Home ›

Examples

Forbidden CityReverse Merger Transactions:

  • The New York Stock Exchange was acquired by Archipelago Holdings to form NYSE Group, with the goal of taking the New York Stock Exchange, a mutual company, public.
  • Aérospatiale was acquired by Matra to form Aérospatiale-Matra, with the goal of taking the Aerospatiale, a state-owned company, public.
  • ValuJet Airlines was acquired by AirWays Corp. to form AirTran Holdings, with the goal of shedding the tarnished reputation of ValueJet.
  • ABC Radio merged with Citadel Broadcasting Corporation, with the goal of spinning the ABC Radio off from its parent, Disney.

Reverse Mergers Between China and US Companies:

  • Harbin Bioengineering was acquired by Internet Golf Association (a shell company) in January 2002. Subsequently, the company, now called American Oriental Bioengineering, has raised $66 million through two PIPE transactions and has completed another acquisition within China. The stock is now listed on the NYSE under the symbol AOB, with a market cap of $560 million USD.
  • Shenzhen BAK Battery was acquired by Medina Coffee (a shell company) with the goal of taking the BAK Battery public and raising capital. The new entity is called China BAK Battery and is now trading on the NASDAQ Stock Exchange under the symbol CBAK, and has raised over $74 million USD through three PIPE transactions.
  • China Aoxing Pharmaceutical was acquired by Central American Equities（a shell company） with the goal of taking Aoxing public and raising capital. The new company trades on the OTC Bulletin Board under the symbol CAXG and completed a PIPE financing in November 2006.
  • Dalian Fushi was acquired by Parallel Technologies (a shell company) with the goal of taking Fushi public and raising capital. The surviving entity is called Fushi International, and has raised $71 million through a series of PIPE transactions and trades on the NASDAQ Stock Exchange under the symbol FSIN with a market cap of $600 million.
  • China Precision Steel was acquired by Oralabs, Inc. (a shell company) simultaneously with the management of Oralabs resigning and taking the existing operating business private. This resulted in China Precision Steel becoming the first Chinese company to reverse merge directly onto the NASDAQ Stock Exchange, where it trades under the ticker CPSL. Subsequent to the merger, CPSL has raised over $70 million in two common stock PIPE transactions.
  • China Security went public in the United States through the reverse merger process with a shell company in July 2005, raising $8 million at that time. The Company has subsequently raised an additional $75 million in three PIPE financings. After a successful application to the NYSE, China Security trades under the ticker CSR with a market cap in excess of One Billion USD.
  • Zhongpin went public on the OTCBB through a reverse merger in January 2006, with a concurrent $27 million fund raise. Subsequently, Zhongpin has listed its shares on NASDAQ under the ticker HOGS and raised an additional $50 million in PIPE financing. The Company’s current market cap is in excess of $340 million.

Neither the information, nor any opinion contained in this web site constitutes a solicitation or offer by Primary Capital or its affiliates to buy or sell, or offer to buy or sell, any securities, futures, option or other financial instruments or provide any investment advice or service. Investing in securities of foreign companies, or companies with all or substantially all of their operations in another country, can involve substantial risks, including risks relating to currency fluctuation, different financial, internal controls, accounting standards, and political instability.

Primary Capital expects to receive and/or does receive compensation for investment banking services performed for certain of the companies for which it provides services and or research. Investors should assume that Primary Capital is soliciting or will solicit investment banking or other business relationships from the companies covered listed on its website. Primary Capital has received compensation for investment banking services within the last 12 months, or expects to receive or intends to seek compensation for investment banking services in the next three months, from these companies. Primary Capital may make a market in these securities and as such, buys and sells from customers on a principal basis. Primary capital may be long or short any of these securities at any given time. Primary Capital and/or its officers, principals, employees, or owners may own options, rights, or warrants to purchase these securities.

All financial information as of 12/31/07