We typically reserve availability of public shells for operating, typically profitable, companies. However, shells are available to developmental stage companies when there is opportunity for large upside potential, key management in place and there is evidence that sufficient funding will be made available after a reverse merger is consummated. While the reverse merger process is significantly simpler than an IPO, the process is still a demanding one. Cooperation from both sides is crucial and diligence must be taken by the private company to provide all company information, approval by the Board of Directors and the completion of audited financial statements within a reasonable time period. Assuming diligent action, a private company can be trading in 30 to 90 days after an agreement has been forged.
Preparation is of utmost importance.
Outside consultants are often hired to execute public and investor relations strategies in order to fill gaps in management expertise and to preserve management's valuable time. Maintaining active and open communications with shareholders and potential shareholders is paramount to the success of a public company by establishing a foothold in the financial community. Increasing investor and industry awareness of your company assures full value of publicly traded stock, which is of particular importance when the stock price and volume may dictate availability of funding, acquisitions or liquidation of shareholders. Next Step Capital is well versed with both financial communications and working with private companies interested in moving to a public market through a reverse merger.