Conditions are ripe for reverse mergers

Conditions are ripe for reverse mergers

Source: 
EP Vantage
snippet: 

With the IPO window barely open, investors sick of Spacs, and increasing numbers of cash-rich and pipeline-poor developers, conditions are ripe for reverse mergers. Four such transactions have emerged so far this year and, unless the public markets become more conducive to flotations, more will surely follow.

A reverse merger typically involves a private company taking over a public group’s listing, with the latter party all but wound up. In reality these transactions follow variations on a theme, as with the deal announced today that will see London-listed Redx take over Jounce’s Nasdaq listing.