Join Us On My New Blog!

All: as of May 1, 2013, I am now blogging exclusively at http://www.davidfeldmanblog.com. In addition to continuing my coverage of alternatives to traditional IPOs, including reverse mergers, we have expanded the commentary to include the economy, the capital markets, entrepreneurship, the legal industry, crowdfunding, the SEC, Congress and the regulatory environment. The enhanced coverage is ...

Can Seasoning Restrictions Be Adjusted?

I remain determined in my quest for the major stock exchanges to consider some alterations to the reverse merger “seasoning” requirements instituted in November 2011.  As we know, these restrictions were added primarily in response to allegations of fraud in a number of Chinese companies that went public through reverse mergers. The rules add a ...

Big Award in Chinese Reverse Merger Case

In what appears to be the first actual judgment in the several dozen cases involving allegations of impropriety in cases of Chinese companies that went public in the US, a $77 million arbitration award was granted to a plaintiff in an arbitration case in Hong Kong. AIG CEO Hank Greenberg’s C.V. Starr & Co. sued the founding shareholders ...

Fourth Quarter Good for Small Company Financing

According to the DealFlow Report, the fourth quarter of 2012 saw a nice uptick in financing activities for smallcap companies. Reverse mergers were down, but in general people are feeling good and more financings are getting done for small public companies. Jefferies (which is being sold to Leucadia National), JMP, Piper Jaffray, Cowen & Co. ...

New Year’s Wishes for Smallcap World for 2013 1

For now the 6th year in a row I’m happy to throw out my wish list for the small and microcap world and those into alternatives to a traditional IPO to go public. As always I want to give special thanks to my faithful blogees especially in this, a challenging year for many of us. The ...

Flash: SEC Charges Top CPA Firms with Securities Violations re China 1

The Securities and Exchange Commission today announced that it is charging affiliates of the “big four” accounting firms (as well as BDO) with securities violations for failing to turn over work papers regarding audits they conducted of Chinese companies owned by US public companies. The SEC and the Public Company Accounting Oversight Board (PCAOB), which ...

Reverse Merger Market Improving 2

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” ...

Highlights from SEC Small Business Conference Part II

Here are more take-aways from today’s SEC conference. 1. Many are asking for the SEC to try to provide a “safe harbor” that’s nonexclusive to ensure that a company has verified an investor’s accredited status if the company chooses to advertise or generally solicit for investors as will soon be permitted thanks to JOBS. 2. ...

PCAOB Starts Observation of Chinese Audits

Reuters and The Reverse Merger Wire are reporting that the Public Company Accounting Oversight Board (PCAOB), which regulates auditors of US public companies, has gone through its first round of observations of Chinese regulators’ reviews of auditors in China. For several years the Chinese regulators were not permitting any observation or review of Chinese auditors ...

Meet Me at the SEC Small Business Conference

I head down to our nation’s capital later this week for the annual SEC Government-Business Forum on Small Business Capital Formation, which the Commission has gathered since 1982 when Congress mandated it take place. We listen to SEC Commissioners and interesting panelists and then break into workshops to develop recommendations for the staff and Commissioners. The ...