Below are the 2 most recent journal entries recorded in dominicdimattia's InsaneJournal:

Friday, October 21st, 2011
7:12 pm	The certainty concerning Reverse Mergers Each year Reverse Merger transactions are completed numerous companies to penetrate the population arena. This is successfully done by merging with what is known as a shell company. A Shell company is simply that, it is a shell of the former self. They have now operations, usually no employees no assets. What it really does have however is a trading symbol for the common stock. reverse merger Why is that so valuable you might ask? Well, firms that wish to raise capital but don't have any assets to to borrow against and entrepreneurs that do not wish to require a second mortgage on their own homes, can use this common stock just as one asset. Hedge Funds actually look for new public companies to get to make a good return for investors. Once the Reverse Merger closes the non-public company that merges into the shell appoints its board of directors, its officers and in most cases changes the specific old shell company on the name with the private company which is now seizing. The private company basically assumes charge of that public entity and executes a unique enterprize model. reverse merger transaction The main transaction usually includes a reverse stock split so that the private company's owners use a majority power over the most popular stock. The prevailing shareholders inside public company are certainly not too happy regarding the reverse stock split, however, many welcome the opposite merger because now a fresh company by incorporating life within it is going to have a better chance at helping the stock price, even looking at the reverse stock split. Also part of this process is really a funding component. A hedge fund or bridge loan investor will often front the amount of money to pay for the price tag on the reverse merger and then a more substantial investor will come directly into fund an acquisition or major marketing insurance policy for the organization. Another positive facet of this sort of transaction is always that a public company is often worth higher than a private company with the same earnings. For instance, an exclusive company with $5,000,000 in revenues and $1,000,000 in net income may possibly be worth $5,000,000. Conversely a public company with those self same numbers may be worth $10,000,000 based on a price to earnings ratio of 10, which isn't whatsoever uncommon. reverse merger shell Therefore, firms that are searching for an improvement capital opportunity might want to look at the reverse merger process and look at the benefits which might be produced by such transaction. (Comment on this)
7:09 pm	The real truth about Reverse Mergers Annually Reverse Merger transactions are completed numerous companies to enter the population arena. This is successfully done by merging using what works as a shell company. A Shell company is definitely that, it is a shell of its former self. They have now operations, usually no employees and no assets. Exactly what it has however is a trading symbol for its common stock. reverse merger Can you explain that so valuable you might ask? Well, firms that are looking to raise investment capital but have zero assets to to borrow against and entrepreneurs that do not want to please take a second mortgage on the homes, will use this common stock being an asset. Hedge Funds actually look for new public companies to purchase to create a good return for his or her investors. After the Reverse Merger closes in which you company that merges into the shell appoints its board of directors, its officers and often changes the particular old shell company on the name from the private company that's now taking over. The private company basically assumes power over that public entity and executes its very own enterprize model. reverse merger transaction Part of the transaction usually includes a reverse stock split so that the private company's owners have a majority control of the regular stock. The current shareholders in the public company aren't too happy regarding the reverse stock split, but a majority of welcome the reverse merger because now a new company with some life inside is going to have an improved chance at enhancing the stock price, even taking into consideration the reverse stock split. Also much of this process is really a funding component. A hedge fund or bridge loan investor will normally front the bucks to pay for the price of the reverse merger and then a greater investor comes directly into fund an acquisition or major marketing policy for the corporation. Another positive facet of this sort of transaction is the fact that a public company is frequently worth more than a private company with similar earnings. For instance, a private company with $5,000,000 in revenues and $1,000,000 in net gain may be worth $5,000,000. Alternatively a public company with those same numbers may be valued at $10,000,000 with different price to earnings ratio of 10, which isn't in any respect uncommon. reverse merger shell Therefore, companies that are looking for a rise capital opportunity may choose to look at the reverse merger process and think about the benefits which might be based on such transaction. (Comment on this)