A Reverse Merger is a transaction where by the private company shareholders may gain control of a public company by merging it in with their private company. The private company shareholders receive a substantial majority of the shares of the public company (normally 85% to 90% or more) and the control of the board of directors. The transaction can be accomplished in as little as two weeks, resulting in the private company becoming a public company. The transaction does not go through a review process with state and federal regulators because the public company has already completed the process.

The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the public shell company issues a substantial majority of its shares and the board control to the shareholders of the private company. The private company shareholders pay for the shell and contribute their private company shares to the shell company and the private company is now public.

A reverse merger into a public shell is the best and fastest way to become public and will cost from $75k to $1M depending on the type of the public shell. For an example, a pink sheets shell might cost from $75k to $200K and an OTC bulletin board public shell might cost from $350K to $1M. There are many variables defining the cost of the reverse merger. FutureTech Capital can guide you though the process to better locate the best shell for your company.