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An amusing example of this: a pharma startup wanted to sell shares to raise money for drug development, so they bought a tiny Las Vegas concession vendor called
by tdeck 6y ago
An amusing example of this: a pharma startup wanted to sell shares to raise money for drug development, so they bought a tiny Las Vegas concession vendor called Fun City Popcorn that was already public and then merged with them:
https://sec.report/Document/0001144204-05-032459/ https://sec.report/Document/0001144204-05-032459/
I heard about this on 99% invisible:
https://99percentinvisible.org/episode/orphan-drugs/ https://99percentinvisible.org/episode/orphan-drugs/
- raverbashing 6y agoI'm sure there's nothing wrong with a small concession vendor being a public company neither. Sounds like I should just go to Robinhood and put all my money on it
- djbebs 6y agoWhy would it be wrong?
- JumpCrisscross 6y ago> An amusing example of this: a pharma startup wanted to sell shares to raise money for drug development, so they bought a tiny Las Vegas concession vendor called Fun City Popcorn that was already public and then merged with them This is a reverse merger. SPACs, or blank-cheque companies, involve a reverse merger. But they’re a specialised case of them.