Reverse Takeover

 

 

 

 

 

A reverse merger takeover or reverse wenk merger (reverse IPO) is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company.


shell_co

The SEC (Securities and Exchange Commission) has two definitions that apply to shell companies:

  • Shell Company
  • Blank Check Company

 

 

A “shell company” is any company that has:

  • no or nominal operations and
  • no or nominal assets or assets consisting solely of any amount of cash and cash equivalents and nominal other assets.

 

 

A blank check company is a development stage company that:

  • has no specific business plan or purpose or
  • has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person.

 

 

 

 

 

 

Leave a Reply