RMR Says BATS Likely to Require Seasoning; What About BX?

RMR Says BATS Likely to Require Seasoning; What About BX?

The latest issue of The Reverse Merger Report includes an unfortunate comment in its article on the BATS exchange, a new national securities exchange that is soon going to be taking on new listings. Its listing requirements are similar to Nasdaq. We were hopeful that this might be a home for future reverse merged companies where there would be no requirement to "season" these companies by trading over-the-counter for a period of time before uplisting. There had been no indication that BATS was considering such a proposal.

Unfortunately, the RMR says they believe that BATS is likely to require seasoning. The article does not provide specifics of any actual proposal, and does not suggest that one has been made. One assumes that reporters have received some inside scoop about the intentions of the large banks who own the BATS. Who knows, maybe the BATS guys will realize a great opportunity to snag some amazing companies facing this overreaction to a contained problem on other exchanges.. Maybe..

Meanwhile, it is still not clear whether Nasdaq's desire to season reverse merged companies on the OTC will apply to its soon to be launched BX Market, to sit below Nasdaq but above the OTC Bulletin Board. First to find out that answer gets a shout out on the RM Blog! Maybe BX will be that "home before we really uplist" if the SEC does not agree with our comments to the large exchanges' proposals to place impediments on growing companies seeking to raise capital.

For additional insights on reverse mergers, SPACs, other alternatives to traditional initial public offerings, the small and microcap markets and the economy, visit the Reverse Merger and SPAC Blog  by David N. Feldman, Esq., Partner of Richardson & Patel LLP.

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