• SEC Approves New Rules to Toughen Listing Standards for Reverse Merger Companies
  • November 18, 2011 | Authors: Daniel J. Bursky; Victor Chen; Douglas C. Freeman; Stuart H. Gelfond; Valerie Ford Jacob; Joshua Wechsler
  • Law Firms: Fried, Frank, Harris, Shriver & Jacobson LLP - New York Office ; Fried, Frank, Harris, Shriver & Jacobson LLP - Hong Kong Office ; Fried, Frank, Harris, Shriver & Jacobson LLP - New York Office
  • On November 8, 2011, the SEC approved new rules proposed by the NASDAQ Stock Market (“NASDAQ”), New York Stock Exchange (“NYSE”) and NYSE Amex that toughen the initial listing requirements for reverse merger companies. Reverse merger or reverse takeover companies (RTOs) typically refer to private operating companies, many of which operate primarily outside the United States, that have become public by combining with an existing U.S. public reporting shell company through a reverse merger or similar process.