
Reverse Merger Funding has advised and helped fund many corporate clients with their funding needs over the years. Some companies we have helped get funded in three or four rounds over three or four years, as those companies grew and expanded. If your company is looking for funding for growth, acquisitions or an asset based loan send us a request. Due to the number of requests we receive we ask that you use this form to contact us. Submit Your Funding Request. We will respond promptly, usually within 2 or 3 days. On an advisory basis we can also offer assistance concerning deal terms and structure if you are currently in discussions with a funding source.
Most Venture Capital Firms, Angel Investors and Hedge Funds start out with a non-binding Term Sheet that both sides sign. This Term Sheet is basically the outline for the attorney's on both sides to prepare the closing documentation for the funding transaction.
It is important for the company to have competent legal advice and accounting advice, even before the term sheet is agreed upon, even though most terms sheets are really not binding.
The preparation of this closing documentation, depending on the complexity of the transaction could take a couple of days or a couple of weeks, and go through several rounds of changes from both sides until the definitive agreements are agreed upon.
The closing documents will likely include a combination of the following documents: Placement Agent Agreement (if there was a broker or finder involved), Securities Purchase Agreement, Registration Rights Agreement (if the shares will be registered so they can eventually be freely traded in a public market like NASDAQ or the OTC Bulletin Board), Convertible Debenture or Convertible Preferred (these are securities that can be converted into the company's common stock), Subscription Agreement, Security Agreement and UCC-1 Financing Statement (if the investment is to be secured by assets of the company), Promissory Note and Escrow Agreement.
Here is another site that offers some valuable advice and information on Deal Terms.