Miro Zecevic

Reverse takeovers An RTO involves a smaller quoted company taking over a larger unquoted company by a share-for-share exchange. In order to acquire the larger unquoted company, a large number of shares in the quoted company will have to be issued to the shareholders of the larger unquoted company. After the takeover the current shareholders in the larger unquoted company will hold the majority of the shares in the quoted company and will therefore have control of the quoted company. Reverse takeovers benefits include: Easier access to capital markets As a listed company, more finance is likely to be available and the cost of that finance is likely to be lower than if the company was still unquoted. Higher company valuation As the shares in the company will be listed, potential investors will deem the shares to be less risky as the company will have to abide by the relevant rules and regulations. Enhanced ability to carry out further takeovers Once the s...

Mergers & Acquisitions - what is the difference?   Mergers and Acquisitions (M&A) is the area of corporate financing, management and strategy dealing with purchasing and or joining with other companies. It is an umbrella term for various transactions such as mergers, acquisitions, consolidations, tender offers, purchase of offers and management acquisitions. In mergers and acquisition two companies are involved but in merger two companies are combined in one and in acquisition one usually larger company buys another smaller company. From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas acquisition occurs when one entity takes ownership of another entity's stock, equity interests or assets. From a commercial and economic point of view, both types of transactions generally results in the consolidation of assets and liabilities and liabilities into one entity and the distinction between a merger and an acqui...

What is alternative to IPO? Reverse merger is a good alternative to traditional initial public offering. Reveres merger is the acquisition of a public company by a private company when shareholder of a private company purchase control of the public company and then merge it with a private company. In this way lengthy and complex process of IPO is bypassed. Publicly traded corporation is called shell because that company usually doesn't have any assets or net value but only its organizational structure.  What reverse merger does is that it separates the going public process and capital raising function. Is is basically conversion mechanism that turns private company into public company. Raising capital is not priority but benefits that come with being a publicly traded company. This separation is the main reason why reverse mergers has so much benefits. private company doesn't have to hire investment bank for underwriting and marketing the shares t...

Reverse Merger A reverse merger is a  merger  in which a private company becomes a public company by acquiring it. It saves a private company from the complicated process and expensive compliance of becoming a public company. Instead, it acquires a public company as an investment and converts itself into a public company. Advantages of Reverse Merger The private company becomes a public company at a lesser cost and gets listed on the exchange without IPO. This type of merger does not create a negative impact on the competition in the market. The chances of reverse  mergers  being put on hold due to negative impact are very less. It helps in saving of taxes of private companies. Disadvantages of Reverse Merger             Lawsuits for various reasons are very common during the reverse             Often the promises made during reverse merger do not come...

Rising Capital with Your Public Company The Problem Solved by Continuous Offerings Period to the introduction of Reg A+, companies with existing stock trading are willing to sell with the old Reg A. To achieve this, the price of the price of the stock had to be relatively reasonably compared to the market price. But, the market price by small companies can be unpredictable or volatile. To enable the company changes the offering price, the company must file an amendment of its Reg A+ filing, and it takes weeks to get the approval by the SEC. During this period of waiting, changes in the market price automatically mean that pricing would be out of date. After the offering is approved by the SEC, companies have the right to offer stock at various prices over a period through the new Reg A+. At the time of sale, pricing information is filed after sale as a supplement which does not require the SEC review. Terminology First, there is a need to understand the differenc...

Regulation A VS IPO Even tough Reg A is an exemption from registration requirements like Reg D and Reg CF, Regulation A has more in common with IPO and it is often called a “mini IPO”. They are both open to all investors and securities offered can be traded and resold. advantages of Reg A is that it is more cost effective and more marketing friendly. Registration statement, known as 1A is similar to but simpler than S1 registration statement that is traditionally used for IPO. It requires just two years of audited financials and general level of disclosure is more streamlined. Preparation of 1A registration statement, attorneys and accountants costs and SEC review time are reduced. Also marketing of Reg A permits use of variety of media. SEC allows general solicitation and the goal is to find potential investors regardless if they have brokerage accounts with syndicate firms or not. To sum it up Reg A is saving time and money. MinaMarGroup.com InvestorRelations.mmg@gm...

                                           Public relations If you are hoping to get the word out there about your business, public relations is the answer.   Public relations has the power to reach a large audience, giving your business the platform it needs to really shine and allows you to attach credibility to your product or company.   With PR, it’s much easier to aim and fire on that target market you are hoping to reach. Media sources can place the information that is right up the consumers alley and give them the required information they need. If you are an accountant hoping to generate some new clientele, placing an ad in a teen magazine likely won’t help you. But a well written article smack dab in the middle of the finance section will probably lea...