Founding Partner Gregory Sichenzia Discusses Reverse Mergers with Law360
Press Release – New York, NY – September 19, 2022 – Sichenzia Ross Ference LLP founding partner Gregory Sichenzia recently spoke with Tom Zanki of Law360 to discuss the growing prominence of reverse mergers as the SPAC market cools off. The article, which can be read on the Law360 website here, includes the following context and quotes from Sichenzia:
Many SPAC mergers are still getting done despite the choppy environment, but several deals have also collapsed in final stages as parties were unable to finalize terms. Sichenzia Ross Ference LLP partner Greg Sichenzia said he’s spoken to a technology company that was courted for a SPAC merger that didn’t pan out and is now considering a reverse merger with a Nasdaq-listed entity.
Sichenzia said reverse mergers could be viewed as more of a “straight-up negotiation” between the acquirer and target. SPAC mergers require the consent of multiple parties, including a sponsor that is negotiating for a slice of the target company’s equity, plus various groups of shareholders whose backing is needed. “It’s a much easier negotiation; there’s less moving parts,” Sichenzia said of reverse mergers.