Don't I need a Reverse Merger with a Public Shell to Go Public?
We believe there is only one reason that a Reverse Merger makes any sense at all: If a company's financing source insists that the private company obtain a trading ticker symbol at the time the financing source makes an investment, this method is the only viable alternative.
Why do a Direct Filing?
If the company can wait an extra four months to obtain a ticker symbol, it clearly should go public with a direct filing.
- The direct filing provides investor liquidity by registering the shares of investors acquired in private placements in the S-1 registration statement.
- The risks inherent in a reverse merger transaction, many of which can lead to a lower trading price for a long period of time, do not exist.
- The cost is significantly less, leaving the company with increased capital to develop its business and thus potentially increase its trading price.


