You Lose: Reg A+ is awesome. Reverse Merge with an OTCQB Public Shell and You Can’t Use Reg A+.

A Reverse Merger with a Public Shell continues to be the preferred method of going public for many small companies.  If you right now are considering a reverse merger with a listed, trading OTCQB public shell, go through with it and YOU LOSE BIG TIME!

Not for all of the reasons that are well known including unknown shareholders, unknown debt, shell shareholders selling and depressing the price of your stock, etc.

There is a brand new, hugely significant reason to Go Public Direct rather than close that merger.

What is it?

You lose the ability to raise money through or otherwise use Regulation A+.  Close that merger and look what you CANNOT do:

  • Use General Advertising and Solicitation- Even Use Internet and Social Media Legally to Raise Money from investors in all 50 states
  • Take All Investors:  Accredited and Unaccredited
  • No Limit on Number of Investors
  • Raise Up to $50 million
  • Easier SEC Registration Process
  • Use Tier II and Avoid State Law Blue Sky Filing Requirements

So don’t listen to me.  Most people when I try to explain why they shouldn’t do a Public Shell Reverse Merger tune me out.  OK.  But unlike my clients who will use our brand new Go Public Direct A+ Program to go public, you won’t be able to use Reg. A+ and take advantage of all of these amazing possibilities raising money under Regulation A+.

In short, with new Regulation A+:  Reverse Merge with an OTCQB public shell – YOU LOSE.