Document background
The Reverse Merger Agreement is utilized when a private company seeks to become publicly traded without undergoing the traditional IPO process. This document, governed by U.S. federal and state laws, structures the transaction whereby a private operating company merges with a public shell company, effectively becoming public itself. The agreement details critical aspects such as share exchange mechanics, corporate governance transitions, and regulatory compliance requirements. It's particularly relevant when time-to-market is crucial and traditional IPO costs are prohibitive. The document must comply with SEC regulations, state corporate laws, and stock exchange requirements.
