Reverse Merger Could Help Madoff Victims

Reverse Merger Could Help Madoff Victims

According to this month's Reverse Merger Report, a company that is owned 11% by Bernard L. Madoff Investment Securities completed a reverse merger last month. The company, AbTech Holdings, merged with a shell called Laurel Resources. AbTech makes products to remove pollution from water, according to the RMR.

The good news: anything that comes out of the ownership by Madoff's firm goes to his victims. There's a big law firm keeping an eye to make sure that happens. What's the value of this company? Don't know, but another large stockholder is Country Life Insurance Co. They apparently have this thing called the "smart sponge" which takes bad stuff out of the water. They lost about $2.6 million in 2009 but raised $3 million before the reverse merger.

Small companies doing cool things should have the chance to grow by accessing public markets, when they can benefit from being public and can bear the costs of doing so. Let's hope, for BM's victims' sake, that this one pays off.

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.

For more information about LexisNexis products and solutions connect with us through our corporate site.