DALLAS, Nov. 12, 2002 (PRIMEZONE) -- More and more senior executives of private companies and their advisors are exploring the advantages and disadvantages of the reverse merger as a credible option to the Initial Public Offering or IPO, said Tim Halter, President of Halter Financial Group (www.halterfinancial.com), a leading financial consulting firm and lead manager of more than 60 Reverse Merger transactions.
Said Halter: "We are excited to bring this course to the public. We believe the Reverse Merger transaction affords many more companies the opportunity to go public and will continue to do so, even after the IPO comes back in favor."
According to industry statistics, in 1999, there were 545 IPOs versus only 59 as of October 31, 2002 while reverse merger activity is climbing steadily.
Until recently, companies had limited resources to search and learn about this increasingly popular method for going public. Those individuals and companies thinking of going public should consider a new Web-based course on reverse mergers which provides an overview of this increasingly popular transaction.
"Anybody even considering going public through a reverse merger should attend this seminar. It not only provided technical and practical information on how to do a reverse merger, it also explained the pitfalls and what not to do when going public this way," said Roland Savage with AGS Specialists, Inc., an American Stock Exchange member firm.
The Reverse Merger, simply put, is a method for going public which allows a private company to merge with an inactive or dormant public entity or "public shell." There are four types of shells: non-reporting/non-trading; non-reporting/trading - Pink Sheets; reporting/non-trading; reporting/trading - OTCBB. Each has advantages depending upon the specific objectives of the eventual merged company. Radio Shack Corporation (RSH:NYSE), Turner Broadcasting Systems, Waste Management, Inc. (WMI:NYSE) and Occidental Petroleum Corp. (OXY:NYSE) are just a few of the better known Reverse Merger companies.
Halter said the 6-hour, Internet-based course also includes a presentation by a leading investment banker who discusses aspects of PIPEs, a very popular funding vehicle for public companies. PIPE stands for Private Investment in a Public Entity, and could typically occur after a Reverse Merger. The Reverse Merger course retails for $279, or $249 for groups of five or more. For more information, please visit www.halterfinancial.com.
Halter continued: "It is important to realize that a Reverse Merger is not for everyone. For those companies with the ability to attract a certain market capitalization, high growth potential and a believable business plan, the benefits of going public with this method can be significant. However, for companies who do not have the necessary requirements, going public through a Reverse Merger can be a mistake. In this seminar we discuss these issues in detail."
Halter went on to say: "We have seen an increase in both the quality and quantity of companies pursuing a Reverse Merger. Although this is likely due in part to the weak IPO market, we began to see this trend prior to the market downturn. With so many successful Reverse Merger transactions being completed, the street has begun to take notice of this method of going public as a viable alternative to the IPO."
About Halter Financial
Halter Financial Group, Inc. is a specialized consulting firm in the business of assisting private companies in becoming public, specifically through the Reverse Merger process. HFG helps clients handle all aspects of the Reverse Merger process, which includes providing a clean public shell, assisting in all legal and accounting issues, and providing guidance with investor relations. HFG's organization includes individuals with expertise in all of the areas that are required to successfully complete a Reverse Merger transaction.