-- Association's goal is to serve as an industry advocate and promote
best practices
-- New Web site: www.ReverseMergerAssociation.com
NEW YORK, Nov. 7, 2006 (PRIMEZONE) -- The Reverse Merger Association yesterday announced its formation and the launch of a new Web site: www.ReverseMergerAssociation.com.
Mission
The Reverse Merger Association is a trade association for individuals and businesses engaged in or interested in reverse mergers and other alternatives to traditional public offerings. The Association's goal is to provide its members with an organization which serves as an industry advocate, promotes a positive image of these techniques and offers opportunities for professional development as well as the exchange of information and transaction opportunities.
Timothy J. Keating, Chairman of the Association, stated, "For the past six years, there have been on average approximately 10 IPOs per year in the U.S. where under $25 million in new capital has been raised, effectively rendering the small cap IPO market shut. The combination of a reverse merger and contemporaneous private placement (PIPE) has stepped in to fill this new issue void. As the quality of the issuers has improved and the size of the PIPE transactions has increased, this new alternative for going public and raising capital has increasingly become mainstream -- much like PIPE financings did over the past 10 years." Mr. Keating further stated, "The founders of the Reverse Merger Association felt that given the severe challenges in the capital formation process for small issuers through traditional IPOs, the time was right for leaders in our industry to step forward and create a single voice as an advocate for raising the bar for this legitimate alternative technique to becoming publicly traded."
Founding and Organization
The Reverse Merger Association was founded on April 12, 2006 by David N. Feldman (Managing Partner, Feldman Weinstein & Smith LLP), Timothy P. Halter (Chairman & CEO, Halter Financial Group), Timothy J. Keating (President, Keating Investments, LLC) and Nimish P. Patel (Managing Partner, Richardson & Patel, LLP), who are its founding directors. The Association is organized as a Type A corporation pursuant to Section 201 of the Not-for-Profit Corporation Law of the State of New York. The officers for 2007 are:
-- Chairman: Timothy J. Keating -- President: David N. Feldman -- Executive Vice Presidents: Timothy P. Halter and Nimish P. Patel
Membership & Committees
It is anticipated that the members will be comprised of investment bankers, broker-dealers, attorneys, auditors, financial advisors, investor and public relations consultants, and others who play a role in the reverse merger process. All members of the Reverse Merger Association will be required to abide by a Code of Conduct, which will be established in early 2007. Dues will be determined by the Membership & Finance Committee also in early 2007. The Reverse Merger Association anticipates having at least the following three committees: Membership & Finance, Policy & Advocacy, and Information & Events. The Membership & Finance Committee will have its initial meeting in early 2007 to establish policies and procedures for admitting new members.