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Reverse Merger Overview
The dot-com stock implosion of 2001 caused the Securities and Exchange Commission (SEC) to alter rules and regulations to benefit small companies in obtaining capital and liquidity while attempting to protect the investing public from unsavory funding deals. Reverse mergers combined with Private Investment in Public Entity (PIPE) became common place, generally replacing Initial Public Offerings when raising less then $25 million.
In February 2008, the SEC again revised the rules for reverse mergers associated with
a PIPE. The change signaled that the SEC would be more restrictive in approving a reverse merger with a PIPE transaction in order to protect the public from unsound transactions. The SEC did provide the opportunity for enhanced investor liquidity by reducing the holding period for stock sales regulated by Rule 144.
Premier Capital Alternatives is uniquely qualified to navigate these new rules. With our extensive network of investors, the result will be successful fund raising events that provide capital for:
Using our alternatives to a reverse merge or IPO, your company’s market value
can increase and you can offer a clear path to a monetized exit. Small private companies typically sell at a multiple of 4-5 times earnings while the same size public company sells for 15-20 times. To make your company’s value proposition attractive to potential investors, Premiere Capital Alternatives can provide:
Sequenced Capital Infusions from Mezzanine through PIPE
Consulting to Prepare for possible Investor Exit
A Highly Effective Investor Presentation Package
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