Vista Investments

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Reverse Merger

In a Reverse Merger the private company shareholders purchase control of the public shell company and then merge it with their private company. The private company shareholders receive a substantial majority of the shares of the public shell company and control of its board of directors. The transaction can be accomplished within weeks, resulting in the private company becoming a public company. If the public shell is a Reporting Company, the private company does not go through an expensive and time consuming review process with state and federal regulators because the public shell company has already completed the process. The transaction involves the private and public shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement and plan of merger. At the closing the public shell company issues a substantial majority of its shares and board control to the shareholders of the private company, who pay for the public shell and contribute their private company shares to the public shell company they now control. This share exchange and change of control completes the Reverse Merger process and the private company is now public.

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