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The BBX was
introduced with great fanfare and was going to
revolutionize the markets for smaller company stock.
This was really a two-edged sword for smaller companies,
as the listing requirements (and expenses!) would be
greater, but there should have been greater liquidity
for listed stocks.
That is the
past. Today we are back to the OTC Bulletin Board
for companies that do not yet meet NASDAQ small cap
requirements.
What is the
impact of this on your business? If you are
looking for access to public capital, reverse-shell
mergers will once again be viable opportunities.
Companies
that want to become publicly traded can merge into a
currently traded or listed entity without having to go
through the paperwork and expense of filing an initial
registration.
This step is
not for the average company! There are many
factors that need to be weighed before taking this step,
or serious repercussions can occur. These can
include but are not limited to finding severe problems
with the public entity after the fact, market makers
hammering the stock price, existing shareholders of the
former company causing problems, and more.
If you are
looking to build a strong business with public capital,
it is wise to look at the standards that were proposed
for qualification for the BBX and adopt them for your
company. It will make you stronger in the long
run.
When
considering the opportunities of public capital, give us
a call. We would be happy to discuss the pros and
cons, and offer a range of choices best suited for your
particular situation. |
