Compare Reverse Merger to Direct Listing 

Cost Comparison of a Reverse Merger vs New Public Company  Reporting Company Shell

Research of shell history with securities lawyer opinion

$10,000-$15,000

Reporting company shell, (ready for filing)

$300,000-$375,000

ACAOB audits for past 3 years (required for merger)      

$25,000-/$50,000

Super 8K, same content as required for an IPO

$35,000-$50,000

FINRA review, legal and market maker fees

$10,000-$20,000

DTC sponsor fees to market maker

$10,000-$20,000

New Stock Exchange Listing

$8,000-$12,000

Reverse Merger (with reporting shell)

$398,000 – $542,000

Cost Comparison of a Reverse Merger vs New Company Non-Reporting Company Shell

Step One of a Reverse Merger

Research of shell history with securities lawyer opinion

$10,000-$15,000

Non-reporting company shell, (ready for filing)

 $125,000-$175,000

No audits needed to merge

$0

No SEC reports required

$0

FINRA review, legal and market maker fees

$10,000-$20,000

No DTC sponsor fees needed

$0

No new stock exchange listing fees required

Reverse Merger (with non-reporting shell)

$145,000 – $210,000

Shares issued by a company that merged with a non-reporting shell cannot be sold or traded on any stock exchange until the newly merged company completes registration with the SEC.

Cost Comparison of a Reverse Merger vs New Company Non-Reporting Company Shell

Step Two of a Reverse Merger

Audit of the shell and operating company, consolidated (non-PCAOB)

$25,000

Registration under Regulation A plus with the SEC

$50-80,000

DTC sponsor fees to market maker

$10,000-$20,000 

New Stock Exchange listing fees

$8,000-$12,000

Register Company with the SEC

$145,000 – $210,000

Total Cost 

Total cost for SEC company registration

$93,000-$137,000

Reverse Merger (with non-reporting shell)

$145,000-$210,000

Cost for SEC company registration

$93,000-$137,000

Both Steps for a non-reporting shell

$238,000-$347,000

Total Cost

$238,000 – $347,000

A Better, Faster, and Cheaper way to go public than a Reverse Merger Whitehall can register your company and your shares with the SEC. These are the typical costs.

Audit your operating company, (non-PCAOB)

$10,000-$20,000

Investment banking structure fees

$35,000

Registration under Regulation A plus with the SEC

$60,000

DTC sponsor fees to market maker

$20,000 

Stock Exchange listing fees

$12,000

Total cost for both steps for non-reporting shell

$137,000 – $147,000

We refer to this transaction as a Direct Listing because it bi-passes a reverse merger and an underwriter.

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