In some cases changing the name of the shell used in a reverse merger scenario is immaterial to the longevity of the business, especially if the private company still maintains complete autonomy and branding. The best example is the overly-referenced Berkshire Hathaway. When Warren Buffett...
After performing a reverse merger with Graymark Healthcare in 2013, Foundation Healthcare has been producing very poorly. The loss for 2013 totaled $20.4MM while the loss for the first half of 2014 hit $3.4MM. Analysts are not hopeful they will be able to pull out...
We've discussed the risks and recent opportunities inherent in marijuana reverse takeovers before. Today's report of wild-swings in the Mary Jane market come from HotStocked who reported a precipitous decline in Vapor Group, Inc. Yesterday the stock dropped 24% most likely on concerns of dilution....
A fantastic article was published today on SeekingAlpha the benefit of using Net Operating Loss (NOL) carry-forwards and how they can, if structured properly, be used as fantastic asset to avoid corporate tax. The government doesn't like them for obvious reasons, but they remain a...
The mantra that you can't do it all applies to reverse mergers as much as anything else. The cost, quality, speed conundrum is one such area. Typical analysis of cost, quality and speed tell us we are only allowed to have two out of three....
In what appears to be a repeat of the Facebook WhatsApp transaction here in the U.S., Korean mobile messaging and ecommerce app Kakao went public on Oct. 1 with a reverse merger with the existing public Daum on the KOSDAQ (Korean Stock Exchange). The combined...
The largest technology companies in the world are throwing their capital at automation and artificial intelligence. Even the hamburger flipper is becoming fearful of losing his job. Investment bankers are certainly no exception. Finance professionals are getting more accustomed to working with machines and computers....
I've seen the debate raging on both Investorshub, Linkedin and Twitter: should a company perform a reverse merger or vie for the equity crowdfunding route? It's an interesting question which does not, unfortunately, have a overarching answer for each firm that may be weighing the...
The reasons for performing a reverse merger are wide and varied. Each individual situation is unique and typically requires an in depth understanding of the underlying goals of the company in question as well as the pitfalls and risks associated with any course of action...
This news initially came yesterday and the deal was set to be closed as of today. The reverse takeover by Horizon Pharma of Vidara Therapeutics represents a logical combination of two biotherapeutic companies. Both firms hold proprietary rights to biotechnology drugs for the treatment of inflammation,...