Does My Company Qualify To Become Public?
Absolutely. There is no minimum level of sales, profits or assets that your company needs
to become publicly traded on the NASDAQ Over-the-Counter Bulletin Board (OTCBB). There are listing
requirements for all other exchanges.
Your company can go public through a reverse merger if you are a well-established business, a start-up or still in the development stage.
However, reverse mergers are appropriate for companies that do not need capital quickly and that will experience enough growth to reach a size and scale at which they can succeed as a public entity.
Reverse mergers can be best used to finance anything from product development to working capital needs. However, they work best for companies that do not need capital quickly. Not that reverse mergers take long to consummate, but the initial transaction is usually just the halfway point. Once public, a company generally must still find capital. Also, this financing technique works better for companies that will experience substantial enough growth to develop into a "real" public company.