My Unscientific Anecdotal Update - Deals up!

In the three weeks or so since the new 415 pronouncements, I have noticed a meaningful increase in reverse merger deal flow and those buying and/or creating shells. There was a definite slowdown in both during the last quarter of 2006 because of the uncertainty over how the 415 mess would be resolved. In addition, despite some press reports to the contrary, it appears that SPAC activity also is remaining strong, though new variants are being considered.

The third company to merge with a virgin shell created by my clients is now trading - Cougar Biotechnology (symbol CGRB.OB).

In two speeches I made in the last week, larger and larger crowds seem more and more interested in IPO alternatives.

While I have not seen anyone try it yet, more and more clients are interested in my suggested way to eliminate the 415 issue entirely - through the use of Form S-4 to register, in a primary offering, all shares to be issued in a merger, without limitation on the number of shares.

What are you seeing? Shoot me an email (or post a comment here!)....