A reverse merger enables companies — particularly SMEs and startups — to capitalize their expansion plans or projects through the stock market, without incurring debt or repayment obligations.
It therefore represents an excellent, fast, and non-bureaucratic alternative to traditional financing options such as bank loans (credit checks, balance sheet liabilities, repayment obligations, interest costs) or venture and risk capital (high ownership dilution, loss of voting control, etc.).
Further details can be found in our sections on Financing Models and “Why Reverse Merger and How It Works.”