The RM Holiday Wish List
By David Feldman at 27 November, 2008, 9:53 am
Before heading over to my family’s Thanksgiving feast, I thought I would jot down some things we are all hoping for in the reverse merger world (and, well, just the plain old world) for the holidays and the year ahead…
* I wish that the SEC eliminates the “evergreen” requirement for a former shell to be current if a shareholder wishes to sell shares under Rule 144.
* I wish that the PIPEs market rebounds in the first quarter of next year.
* I wish that we begin the process of talking about revamping the SEC’s Rule 419, passed in 1992. Much has changed in our industry, and much can be improved in it by taking a fresh look at this nearly 20-year old rule which places significant restrictions on any attempt to complete a Securities Act registration for a shell company raising less than $5 million.
* I wish that private equity and venture capital players would finally come around and see the benefits of taking their portfolio companies public through means other than a traditional IPO.
* I wish that the fraudsters and charlatans in our industry would take their marbles and move on.
* I wish that the SEC eliminate or significantly increase the “30% of float” limitation on registering shares for resale under Rule 415.
* I wish that President-elect Obama picks an SEC chairperson who places a strong priority on removing barriers to capital formation for smaller public companies.
* I wish that the horrific events in Mumbai do not end even more tragically than they began.
* I wish that our troops in harm’s way are safe and come home soon.
* I wish the very best to our President-elect in his efforts to improve our economy and keep us safe.
* I wish that we all spend just a little time each day being thankful for the gifts and blessings we have.
Happy Thanksgiving!!!
I am Founder, President&CEO of an emerging 3D imaging company with mutli-modal patented facial recognition technology developed and funded by the U.S. military.
We have been working with a complementary Canadian company whom have exposed us to the CNSX.
Contemplating a reverse merger into a Canadian shell and floating on the Canadian Exchange.
Appreciate any words of advice!
Thank You.
Greg S.
David,
I couldn’t agree more with you regarding the need for VCs and private equity groups to embrace IPO alternatives. I just had a call with the board of a VC backed company, and their lack of knowledge in the space and reputation of shell mergers from years back keeps them from considering a RM as a viable option.
I think it would be beneficial to invite some VCs to guest blog on the site and tell others why this method makes sense.
Anonymous, good idea! I will talk to some vc friends and see if they might add a guest blog. Greg, feel free to contact me at dfeldman@feldmanweinstein.com if you’d like to talk more about your planned transaction.
David