Several recent statements by prominent regulators, as
well as scathing press articles, primarily talking about the problem with
Chinese reverse mergers, have decided to declare that because of the challenges
in China, reverse mergers in general are bad. I"m not enjoying this time travel
Just 37 reverse mergers were completed in the second
quarter of 2011, according to the Reverse Merger Report . That's down
over 50% from the second quarter of last year. Still way more than IPOs, but
down is down. Much of this, of course has to do with China. Only three Chinese
APOs were completed...
The Commission brought another action centered on reverse mergers involving Chinese issuers. This action differs from earlier cases, however, since it focuses on the promoters who are charged with manipulating the shares rather than the companies. SEC v. Kelley, (D. N.J. Filed May 5, 2014).