Los Angeles Business Attorney Highlights Importance of New SEC Reverse Merger Listing Rules
Los Angeles, CA (Law Firm Newswire) December 7, 2011 - The Securities and Exchange Commission released new rules in early November for companies that are going public via a reverse merger. The new rules come after the commission found that numerous companies did not have accurate information about their financial results and audits inside these companies were inadequate. Increased requirements to be listed on NASDAQ, NYSE, or NYSE Amex will now become standard for these types of companies.
“Domestic or international reverse merger companies looking to be on these exchanges will greatly benefit by getting legal counsel on these matters,” said Los Angeles business attorney Anthony Spotora. “We will make sure that the documents are thorough, compliant, and that all the right steps are taken before the listing occurs.”
Reverse mergers are sometimes sought by private companies to connect with U.S. investors and markets by merging with a public shell company that already exists. Before listing, a reverse merger company must trade in a U.S. over-the-counter market, another U.S. regulated exchange, or foreign exchange for a one-year “seasoning period”. All mandated reports must be filed with the SEC along with audited financial statements. A company must also maintain an obligatory minimum share price for a length of time and a minimum of 30 out of 60 trading days just before its application for listing is submitted.
“These steps can be quite complex and greatly affect the Exchange’s decision on listing your company,” said Spotora, who counsels businesses throughout California, the U.S., and abroad.
One of the few exemptions to the SEC requirements is that if the SEC has received four filed annual reports with audited financial information because the reverse merger happened long ago, then the company may be entitled to an exemption. Or, if the reverse merger company is listed as connected with a large, firm commitment of an underwritten public offering, the company can also apply for an exemption.
To learn more about the Los Angeles business lawyer or Los Angeles business litigation attorney Anthony Spotora, visit http://www.spotoralaw.com/.
Law Offices of Spotora & Associates, P.C.
1801 Century Park East, 24th Floor
Los Angeles, California 90067-2302
Call: (310) 556.9641
- Contract Basics for Business: Five Requirements of A Contract
Businesses enter into contracts each and every day. Contracts are formed when customers make purchases, when suppliers deliver materials, or when contractors place orders. Contracts are a critical element when it comes to operating a business, and when contracts are not honored, disputes arise. What Is Required to Form A Contract? A contract requires […]
- Public Figures’ Privacy Rights In California
California is home to many celebrities and public figures, and the paparazzi is regularly and continually make attempts to take photos of these public individuals, or to score interviews with them. Public figures are individuals who have placed themselves in public view, such as actors and actresses, sports athletes, and politicians – many people involved […]
- How Strong Is Your Trademark? The Four Trademark Strength Categories In Brief
Not all trademarks are created equal. Some trademarks are ‘stronger’ in the legal sense than others, meaning that some marks are easier to register and enforce than other marks. Trademarks need to be unique, distinctive, and not easily confused with other existing trademarks when they are applied to a product or service in order to […]