A reverse merger (also referred to as a reverse takeover or reverse IPO) is a way for private companies to go public, generally through a less complicated, shorter, and more cost effective process. A conventional initial public offering (IPO) is a bit more complicated and high-priced, as private companies employ an investment bank to underwrite and issue shares of the soon-to-be public company. Aside from filing the regulatory documents – and helping authorities examine the deal – the bank will also help to establish interest in the stock and provide advice on appropriate initial pricing.

Reverse Merger Penny Stock