We are now going to tell you the hard part – selling the stock. We believe that the more you see what you have to do to achieve your goals, the more you will come to realize the value of our services.

Typical Ways Reverse Merger Companies are Funded

There are several typical patterns in funding reverse mergers.

First, the company may take in private funding before or at the time of the merger.

Second, when the stock is trading after the merger, the company may seek private funds. The investors are more willing to buy privately because they have an exit strategy. This exit strategy generally entails selling into the public market under Rule 144.

Third, if the company has registered with the SEC, it may seek to register new securities with the SEC.

When private sales are made, they are made at a discount to the public market price. Further, most sophisticated private investors will not buy stock privately unless they see that the company has sufficient trading volume to support their sales when the time comes to sell. Companies with only a few shareholders, that do not have heavy trading volumes in their stock, generally find it difficult to find private buyers among professional or sophisticated investors.

Therefore, maximizing the price and trading volume of the stock is very important. This is usually done by using investor relations firms.

Short Sellers – Another Enemy

Please be advised that there are short sellers who prey on small companies that have negative cash flow. The short sellers know that companies with negative cash flow need to sell stock to survive. They know they can deprive the company of funds by beating the price down with aggressive selling and smear campaigns. If they are successful, the company will die or enter the land of the living dead – trading at prices in the cellar.

You Need a Plan

In order to be a successful reverse merger company, you need to know that you have a secure way to raise adequate funds and support the stock in the aftermarket.

Full Disclosure

I have always believed that full disclosure is the best way to create confidence in investors and encourage them to back you with their money.

Now, after the Chinese reverse mergers problems, there is more reason than ever to make the highest quality disclosure possible, no matter how you do your deal.

Expertise

As you consider the wonderful possibilities from having your company fully funded to the point that you seem to have your own private ATM, and as you contemplate the complexities of the securities laws and the hidden predators in the financial markets, we trust that you will start to understand the importance of working with experienced and qualified advisors who can overwhelm your enemies and open the doors to the mysteries of Wall Street. We are here to assist you and we are always looking for the next big thing. Please take the opportunity to contact us. If we have too many other commitments to assist you now, we will be happy to advise you on where to seek assistance.

Securities Compliance for Reverse Mergers

Kindly note well — this is only a summary of the relevant securities laws. it is an attempt to give you what you need to know in a simple, readable format. You must consult qualified securities attorneys that are experienced in this niche of the securities laws. (This part gets into some technical securities issues. Depending on how much you want to dive in to these matters, you may want to skip this section.)

Clck here for the next section, Revers Merger Investor Relations