In an article published by Bloomberg Law, “No Product, No Sales, No Prospects? Consider a Reverse Merger,” partner Chris Barnstable-Brown offers insights on why companies, particularly life sciences companies, may pursue reverse mergers, particularly when investors remain cautious of initial public offerings.
Excerpt: “The company’s shareholder base tends to be more retail focused, so it’s just harder to get people to the table to vote. It’s not that they necessarily vote against your deal, often just trying to find them can be challenging. So having a package of cash and ownership can be attractive."