Let’s spend a few minutes talking about going public either through an initial public offering (IPO) or through a reverse merger. A reverse merger is when you have a company that’s already public and you take your company and put it into that company. In both instances, it’s a lot of work. It is costly, time-consuming, and is a good way to make capital, but it does not necessarily solve all of the problems of the company without creating other kinds of problems. On a reverse merger, when you go under a company that is already public, that company’s going to do what’s called a secondary offering. You have to have a broker network to support you in order to raise money, and you have to make sure you raise enough money at the start in order for you to have enough to keep going and prove yourself. If you don’t get far enough, it is tough to do something once you’ve gone through a reverse merger or an IPO and then go out and raise money in the secondary offering. You have to be very thoughtful about creating a public company or merging into a public company.
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