Question: Access the textbook case study, Catalyst Acquires Targacept in Reverse Merger pp. 385-388. In addition to the requirements for the analysis of a case study

Access the textbook case study, "Catalyst Acquires Targacept in Reverse Merger" pp. 385-388.

In addition to the requirements for the analysis of a case study covered below, please specifically answer the following questions:

  1. What is the purchase price of Targacept and how is it financed? How does this financing structure potentially help the combined firm Catalyst Biosciences fund future spending? How would Catalyst's original shareholders be impacted by a conversion of the notes?
  2. What are common reasons for a private firm to go public? What are the disadvantages and advantages of doing so? Be specific.
  3. What are corporate shells, and how can they create value? Be specific.
  4. Discuss the pros and cons of a reverse merger versus an IPO.
  5. What is the purpose of a private firm in a listing of a major stock exchange such as NASDAQ?

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