Alternative to the Initial Public Offering Entrepreneurs Have New Ways to Access the Public Markets

Released on = April 10, 2007, 4:38 pm

Press Release Author = James Lowery

Industry = Financial

Press Release Summary = Altenative ways to raise capital.

Press Release Body = A few years ago, it seemed that nearly every company was going
public with an IPO to gain capital investment, but now, with this route effectively
blocked to smaller companies, entrepreneurs, angel investors and employees are
increasingly looking at the opportunity of a reverse merger with a trading shell on
the OTC Bulletin Board, the Pink Sheets or Form 10.

Through the reverse merger, your private company merges into a publicly listed
company called a "shell" and gains control. This gives you listed stock that can be
leveraged to raise capital.

This whole process might seem shady, but it is not, indeed many well-known companies
have gone public through a reverse merger process including Warren Buffett\'s
Berkshire Hathaway (http://berkshirehathaway.com/), Turner Broadcasting System,
Occidental Petroleum, Blockbuster Entertainment and even American Idol
(www.americanidol.com)

Investor Peter Klamka of Ann Arbor, Michigan a stake holder in fast growing solar
energy company Girasolar Inc (OTC: GRSR) stated that he thinks "the best way to go
public in the current climate for most private companies, is with a Form 10 shell.
It can be the least expensive method with the opportunity to avoid problems
associated with most trading shells."

At a purchase cost of approximately $50-100K, a Form 10 blank check shell company is
an attractive vehicle for private companies searching for a route onto the public
markets. But, under the purview of the Worm/Wulff Letters, blank check shares are
prevented from instantaneously trading after Form 10-SB shells complete a reverse
merger with a private firm, regardless of how long the shells have been reporting
public companies.

The alternative is an already trading shell listed on the Pink Sheets or OTCBB,
which, with acquisition costs ranging from $150K up to $1 Million is a much more
expensive option.

The greatest benefit of using a Form 10 shell company as your route to public
ownership is that the purchasing company will retain most if not all of the stock in
the shell. Overall the process takes longer, but is ultimately a much better deal
for shareholders and the company alike.



Web Site = http://

Contact Details = James Lowery
9291 Burton Way
Beverly Hills, CA 90210
jlowery@columnist.com

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