Marlen Kruzhkov: Understanding the reverse merger process

This newest Atty. Marlen Kruzhkov blog post focuses on explaining the reverse merger process to readers. Its benefits are also made clear herein.

From Marlen Kruzhkov

Reverse merger or reverse takeover happens when a private company acquires a public company to bypass the lengthy and complex process of going public. It allows the acquiring company, which is often required to reorganize its capitalization, to access a wider range of capital investments and appeal to a variety of investors.

In the process, the private company’s shareholders receive substantial majority of the shares of the public company, which is now referred to as a “public shell company” because all that exists in it is only its organizational structure. They also gain control of the public shell company’s board of directors.

“Atty. Marlen Kruzhkov represents clients
in connection with general corporate
and transactional matters.”

From Marlen Kruzhkov

The transaction involves three important stages: 1. Exchanging information between the two companies involved; 2. negotiating the merger terms; 3. signing a share exchange agreement.

When navigating through these stages of the transaction, companies are often advised to seek guidance from legal experts who are knowledgeable in general corporate and transactional matters.

Gusrae Kaplan Nusbaum PLLC partners with attorneys who have extensive amount of experience representing clients in reverse mergers. Over the last few years, the firm has participated at various stages in nearly 10 reverse merger transactions.

Atty. Marlen Kruzhkov is one of the firm’s members who can give useful advice regarding corporate and securities transactions. Learn more about him and his qualifications by accessing his corporate profile at www.gkblaw.com.

From Marlen Kruzhkov