Helix Wind, Inc.
04 | 14 | 2009
Case Study
The Legal Challenge:
Helix Wind, Inc. is a global renewable energy company with a focus in the manufacture and sale of small wind turbines designed to generate 2.5 to 5 KW of clean, renewable electricity for residential, suburban and urban use. They were interested in taking the company public.
In the current economic climate, however, the depressed financial markets have all but shut the doors for companies to go public. In a down economy, sales for most companies are on a decline, so the chances that the stocks might not do well prevent investors from taking that initial bet.
The Luce Forward Solution:
Luce Forward’s Business / Corporate group team of William Tolin Gay, Of Counsel, and Chad Ensz, Associate, provided counsel through a reverse merger process with Clearview Acquisitions, Inc. There have been almost no traditional IPOs for the past several years, with reverse mergers having outnumbered IPOs since 2005. In an environment where it is difficult to attract investment bank attention, reverse mergers are especially useful for smaller companies to go public.
Under the terms of the agreement and upon close of the transaction on February 12, 2009, Clearview acquired 100% of Helix Wind in consideration of approximately 20.5 million common shares of stock, Helix Wind became a wholly owned operating subsidiary of Clearview, and Clearview will change its public name to Helix Wind, Inc. with current Helix Wind management continuing to run the day-to-day operations of the company.
Client Results:
Luce Forward’s lawyers worked closely over four-months with the client, helping drive the transaction to a successful completion and marked Helix Wind, Inc. as the first small wind renewable energy company to go public in challenging capital markets, while providing the opportunity for its shareholders to share in Helix Wind’s full value and continued success.