We learn from the latest DealFlow Report that November has already been the best month for reverse mergers since June. Eight deals have already been completed this month. If one more gets done then it will tie November of last year.
There is no question that bad press and last year’s addition of the “seasoning” limits on reverse mergers have significantly hit the market for shell mergers. But there remains no shortage of companies that want to be public in an environment where an IPO of a smaller company is unavailable for almost all. We are working with clients on other alternatives, including “self-filings.”
I hope the SEC will consider the proposal made by the participants at the annual small business conference last week: allow companies to bypass seasoning limits with a public offering of $15 or $20 million instead of the $40 million currently in the rules. That would really help. I also hope they do a bang-up job on the regulations they are writing to make Regulation A IPOs more attractive.
Happy Thanksgiving to all my loyal US blogees!