Posts Tagged ‘ipo’

Take Your Company Public: Your Technology Company Can Raise Capital Fast!

Monday, December 21st, 2009

Are you trying to raise capital for your start-up or corporation in expansion? Have you exhausted your traditional institutional sources and hedge fund contacts? Don’t lose hope just yet! First of all, take all those pamphlets and brochures from banks and other traditional lenders that are lying all over your desk and toss them in the trash…they are absolutely useless.

Banks don’t have your company’s best interest in mind as they are hardly even staying afloat in this economy. Today’s institutional financier isn’t qualified to run a bath let alone a bank. Don’t put your future in the untested hands of a 20 something knucklehead. After you’ve tossed all that useless info in the trash, clear your head and then look at your company and ask yourself a few tough questions: Is your company invest-able? Do you and your executive staff have a pedigree that investors deem as seasoned enough to take their money and make affective use of it and not lose it? What proprietary concepts/technology/patents do you have that give you a larger market share with the proper cash infusion? What is your current capital/debt situation?

If, after pondering these questions you’ve come to the conclusion you honestly, truly have something worth pursuing then the next step is to look at the reality that your company is worthy of a public offering. Stay away from Pink Sheets and be weary of reverse mergers and in reality your company won’t qualify for the NASDAQ so the quickest way to raise public capital is the OTCBB (over the counter bulletin boards).

OTCBB is an SEC regulated platform that has a solid investor following and market makers that can effectively promote your stock to rapidly raise capital. Don’t let these difficult economic times steal your dreams of corporate prosperity and personal growth.

If you have a solid business concept, there is a way to fund it. Look into the OTCBB, it’s your best bet for an inexpensive public offering with a direct path to long term funding.

Take Your Company Public, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

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Raise Capital: PIPE, DPO, PPM, OTCBB, Pink Sheets or Reverse Mergers

Friday, December 4th, 2009

There are many ways to use capital without using bank loans, lines of credit and other shady methods like shelf corps and bogus platform scams. If you are truly trying to raise capital for your company here are some simple breakdowns of your options with a quick definition for each one:

 PIPE: Private Investment In Public Equity this is used primarily by mutual funds and private investment firms where they buy discount stock in order to raise capital, there are two types of PIPEs traditional where common and preferred stock is issued at a set cap to raise money for the issuer and a structured pipe issues convertible debt.

 DPO: Direct Public Offering is when you sell equity shares directly to customers, suppliers and employees.

 PPM: Private Placement Memorandum is also known as an offering memorandum takes advantage of Regulation D rule exemptions 504, 505 and 506. This process came into existence with the’33 securities act and popularized in the late’80s, companies can raise money from the public via private placement; there is virtually zero interaction with the SEC after you file form d as long as you stay legal. (most popular form of fund raising).

 IPO: Initial Public Offering: extremely expensive, need SOX 404 audits, must have board of directors, quarterly financial reports to shareholders, report heavily to the SEC and 1 out of every 1000 companies that want an IPO actually qualify. I love participating in these but most companies just can’t qualify for one reason or the other.

 OTCBB: Over the Counter Bulletin Board is an electronic quote system that is the next best thing if you can’t go public via ipo, there is minimal red tape to startups and small businesses and is legitimized by the stringent ongoing reports to the SEC which keeps investor confidence high (these are extremely solid and I suggest this structure to companies when I am hired by their company or legal team as a consultant as a fast, easy way to raise big capital from the public otc)

 Pink Sheet: you can look at pink sheets as the Burger King, while the OTCBB is McDonalds, they are competing otc mechanisms. Pinks sheets are commonly referred to as penny stock and notorious for ‘pump em’ and dump em’ controversies and a lot of crooked people are involved with this platform. This is not a long term process that will allow one’s company to grow, pink sheets companies are typically short lived but it is cheap to set up but not a professional structure that could be upgraded in time to an IPO.

 Reverse Merger: a group funds the filing and creation of a public shell, they then sell that shell to a company that wants to go public, the established company merges it’s entity into the public shell. The sellers retain around 30% equity after they charge an upfront fee of 300k to 1m. 99% of reverse mergers are successful with the merger, but unsuccessful to bring them to trade and the entity basically just fizzles out.

Taking your company public is actually quite simple and inexpensive when you have the right consultant putting the structure together for you. There are countless ways to raise capital quickly and easily. It’s important that you understand your options before you waste time entering into the red tape infested banking system for a loan.

Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

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Take Your Company Public: How To Find a Consultant That Can Make The Process Fast and Easy

Friday, December 4th, 2009

So many companies dream of going public to raise massive amounts of capital, as set up for an exit strategy, to make acquisitions with stock and for many other reasons. While your intentions may be pure and with genuine motives, you’re entering shark infested waters of boiler rooms, crooked attorneys and underbelly consultants who have made careers off of taking well intentioned executives just like you for a 24 month roller-coaster ride while they take every penny you have as your company shrivels up like week old road kill.

Just and honest consultants in the ‘public offering’ industry are as rare as the illusive white elephant. This industry exists in a cesspool surrounded by rose gardens; from afar it looks amazing and an image of a dreamland but get up and close and the sludge and odor are enough to make you run and hide. So what do you look for in a consultant? The best consulting firms are the ’boutique firms’ with minimal overhead that keep a low profile and are made up of 3 or 4 ‘partner’ consultants.

These firms typically have the experience of working with the large consulting groups but for one reason or another have decided to leave and go out on their own. The great thing is, these small groups typically have massive contacts and process your entire public offering in-house. Offering a complete turn-key solution that is managed in-house offers a huge advantage because there is accountability and you can actually build a relationship with the people that are making your dream of a public offering come true.

These ’boutique’ consultants will usually stay on board as growth consultants for the life of the company in exchange for modest fees and a pre-IPO or pre-OTCBB equity position. The large firms will hack you out at the knees and gouge you with fees while they take massive amounts of equity in your company which takes away your bartering chip when you need to offer more stock to the public to raise capital.

The small firms will also work one on one with you to show you how to use your stock to grow through acquisition and other nifty ways to use stock to grow. Seek out the boutique consulting firm and save the attorney for spot audits. Hold on to your cash. Why pay outrageous fees to lawyers when you can pay 60% less with a small consulting firm that will add all the bells and whistles for free and actually get your stock trading, usually in half the time?

Want To Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

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Take Your Company Public: Software Companies Can Raise Capital Fast!

Monday, November 30th, 2009

Are you trying to raise capital for your start-up or corporation in expansion? Have you exhausted your traditional institutional sources and hedge fund contacts? Don’t lose hope just yet! First of all, take all those pamphlets and brochures from banks and other traditional lenders that are lying all over your desk and toss them in the trash…they are absolutely useless.

Banks don’t have your company’s best interest in mind as they are hardly even staying afloat in this economy. Today’s institutional financier isn’t qualified to run a bath let alone a bank. Don’t put your future in the untested hands of a 20 something knucklehead. After you’ve tossed all that useless info in the trash, clear your head and then look at your company and ask yourself a few tough questions: Is your company invest-able? Do you and your executive staff have a pedigree that investors deem as seasoned enough to take their money and make affective use of it and not lose it? What proprietary concepts/technology/patents do you have that give you a larger market share with the proper cash infusion? What is your current capital/debt situation?

If, after pondering these questions you’ve come to the conclusion you honestly, truly have something worth pursuing then the next step is to look at the reality that your company is worthy of a public offering. Stay away from Pink Sheets and be weary of reverse mergers and in reality your company won’t qualify for the NASDAQ so the quickest way to raise public capital is the OTCBB (over the counter bulletin boards).

OTCBB is an SEC regulated platform that has a solid investor following and market makers that can effectively promote your stock to rapidly raise capital. Don’t let these difficult economic times steal your dreams of corporate prosperity and personal growth.

If you have a solid business concept, there is a way to fund it. Look into the OTCBB, it’s your best bet for an inexpensive public offering with a direct path to long term funding.

Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

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Reasons To Take Your Company Public

Monday, November 30th, 2009

There are several reasons why a company would decide to go public; here are some of the advantages. Liquidity is a popular reason for going public via OTCBB or IPO, many global lenders and private equity groups will lend against stock collateral. Private companies lose time jumping through hoops with various FICO driven line of credit and lending programs with outrageous interest rates while a public company can strategically offer stock for sale or collateral. Run a solid company with growth and a sea of content stock holders and you’ve got your own cash register to grow your company.

Another popular reason for going public is to offer stock options to key employees which creates and retains loyalty while reducing cost of compensation. There is no better way to have employees go the extra mile day in and day out than rewarding them with a piece of the company. Stock options are also a way to attract those prized executives that are in demand.

Having a public company allows massive buying power from the perspective of growth through acquisition. Find a company that is the perfect strategic alliance and buy them with company stock. This method of expansion has served the interests of top tier companies since Standard Oil.

What about those companies owned by an individual or a close knit group of entrepreneurs who are getting up there in age and need to start thinking about an exit strategy? Public companies demand higher sale prices and sell faster because of the flexibility of the structure. We could go on and on about the advantages of going public.

Start-up companies wishing to investigate this concept of fundraising you may want to consider the OTCBB, this is a solid and regulated formation to trade your stock publicly with stock holder confidence as opposed to a lesser trusted option called Pink Sheets. For corporations with some age and capital and IPO may be the best way to go, though this process is expensive and can take more than a year, it’s worth it for the right

Want to Take Your Company Public, then call Princeton Corporate Solutions at 267-233-0183 Go Public via OTCBB, IPO or PPM. We offer Complete Turn-key, affordable solutions.

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Take Your Company Public Fast and Cheap

Tuesday, November 24th, 2009

When raising money, usually investors will demand their equity distribution in an SEC approved format like a Private Placement Memorandum, also known as a PPM or offering memorandum. This structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of’33.

The three common exemption rules are Regulation D (Reg D) Rule 504, Rule 505 and Rule 506. These rules carry multiple criteria that assist businesses in raising equity or debt funding without all the stringent legalities of an IPO. These rules are defined like this: Rule 506 provides an exemption for limited offers and sales without regard to the dollar amount of the offering.

This exemption doesn’t limit the number of accredited investors, but the number of non-accredited investors may not exceed 35 investors. (An accredited investor is any one investor with a certain net worth and or experience in the purchase of stocks.) All non-accredited purchasers, either alone or together with a designated representative must be sophisticated enough (meaning, have the knowledge and experience necessary) to evaluate the merits and risks of the investment. (An offering company will usually determines the sophistication of its investors with a questionnaire subscription agreement.)

Rule 506 requires very detailed disclosure of all relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering. Rule 505 offerings may not exceed $5 million, less the total dollar amount of securities sold during the preceding 12 month period under Rule 504, Rule 505 or Section 3 of the act. This exemption limits the number of non-accredited investors to 35 but has no investor sophistication standards. Rule 505 requires disclosure similar to that required for Rule 506 offerings, under $7.5 million.

Regulation D Rule 504 offerings allow a company to raise a maximum of $1 million in funding, less the total dollar amount of securities sold during the preceding 12 month period, under Rule 504, Rule 505 or Section 3 of the act. However, a business can raise only $500,000 by the sale of securities to persons residing in the states of Montana and Alaska, which have no disclosure laws applicable to the offering. For states that do have disclosure laws, which are 48 out of the 50 states, a business can raise up to $1,000,000. Rule 504 has no prescribed disclosure requirements, no limit on the number of purchasers, and no investor sophistication standards. So if you’re trying to raise capital using a Private Placement Memorandum, use the above criteria as a cliff-note and as long as you stay within SEC guidelines, fund raising for your company will be simple.

Call 267-233-0183, Private Placement Memorandum Services, visit Princeton Corporate Solutions to get more info about Private Placement Memorandums and passing Due Diligence

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Take Your Company Public, You Need Publicity To Get To The Next Level

Tuesday, November 24th, 2009

Publicity marketing has evolved tenfold over the past 3 years. The good ole’ boy publicity firms have found themselves left in the dust by the newer, cutting edge publicists that use the internet as their publicity marketing canvas. TV, radio and newspaper articles have become pass while online viral marketing concepts have completely taken over.

Online corporate publicity marketing offers the instantaneous results that that are in demand by a fast paced public and with the economy in the state it’s currently in, clients are able to achieve massive results for a fraction of the cost of traditional publicity mediums. Traditional publicists will argue that a radio interview will create a ton of exposure for the client during the airtime, but they forget to mention that a solid online campaign delivers 24/7 and the exposure will deliver staggering results like clockwork if performed by seasoned publicity marketing experts.

Traditional publicity agencies argue that publicity is just one part of an overall marketing strategy but the reality is Publicity and Marketing are intertwined and interdependent and must be done by the same organization or the momentum is lost in a sea of bureaucratic blur. The truth is, publicity and marketing have merged into one single area of expertise now coined ‘publicity marketing’.

Corporate publicity marketing offers the rapid results of direct marketing with the brand exposure of the professional publicist. This process uses turnkey solutions with a customized client by client approach to deliver results that will support the instantaneous lead generation and website visitation needs of the client while creating an avalanche of long term, permanent publicity branding.

If you are using a publicist for branding and a marketing firm for direct response, you may want to consider investigating a new and talented breed of publicity marketers, you’ll pay a fraction of what you pay traditional publicists and ad agencies and the results will be virtually instant and your message will spread over state and country lines for a rapid expansion that up to now you’ve only dreamed of.

Business Publicity, that will blow your mind! Princeton Corporate Solutions, Internet Publicity professionals.

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Take Your Company Public for Less Than $5,000

Tuesday, November 10th, 2009

OK, you’re ready to take your company to the next level and your CFO and legal counsel have advised you to go public to raise capital as well as to retain some of those prize employees with stock options and to bait that new sales executive with a signing bonus made up of stock options. You’ve looked into everything from pink sheets to reverse mergers to OTCBB to IPO and you have come to the conclusion you’re going to need to take on investors so that you can afford to follow through with your plan. If you’re lacking the funds to dive right in and start creating your public structure, here is a way that just about any business can afford to go public.

First, get a real business plan. Your business plan needs to sizzle and reel in the investor and clearly paint a picture of your vision to the investor and their advisors. Next, you’ll want to raise an initial round of cash quickly so that you can afford to take your company public without hindering your current company structure with additional ancillary costs. You’re going to need something fast and affective; you should consider having a professionally authored private placement memorandum put together for your company.

If you are trying to go public via OTCBB a Regulation D Rule 504 exemption will suffice, if you are trying to achieve an IPO you’ll need to go with a Regulation D Rule 505 exemption (pink sheets and reverse mergers into shell corps are not very successful in immediate and long term success so I would suggest you stay away from these structures). Build into the PPM verbiage that you are raising an initial round of capital that will be used to take your company public. When savvy investors see that they are investing in a real, viable pre-IPO or pre-OTCBB formation you will see investors climbing out of the woodwork to give you cash if your business concept is sound.

Next you hire the consultants (usually the same firm that wrote your PPM) to start the process of taking you public. On the PPM your Mini/Maxi should allow you to use capital almost immediately to get the ball rolling on your public company. You can count on a solid OTCBB going for between $75k and $250k and an IPO going for $1M+ so have your PPM written accordingly. If you follow the path set forth above you will notice something extraordinary.

The only out of pocket expense you had was for your Private Placement Memorandum (and your business plan if you didn’t have one) and 100% of the capital needed to go public was supplied by greedy investors who are excited to invest because of the quick payoff of their investment when you go public. This process means you can literally take your company public for less than $5,000 (the typical cost of a strategic Private Placement Memorandum. This is a simple, strategic and inexpensive way to get the capital you need for your company quickly, without using your limited financial resources in the process.

$5,000 can Take Your Company Public, Call Princeton Corporate Solutions at 267-233-0183 OTCBB, IPO and PPM we do it all.

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How Do I Take My Company Public?” (Without Getting Scammed)

Sunday, November 8th, 2009

So, your company is ready for that next step and you’ve decided to take the dive into the world of public offerings and global fund raising. You imagine investors waiting with bated breath for your company to announce it’s share price and release shares for purchase. You’re imagining swarms of broker dealers clambering and falling all over themselves to promote your stock to their massive investor database while you sit back and fill your company’s coffers with millions in capital that will launch your corporation into the realm of superstardom and hemorrhaging expansion. You start to search the internet and come across ad after ad that promotes the idea that you could save $100,000’s if you buy a public shell and reverse merge your company with it, saving you time and money, resulting in achieving a public structure in only a few weeks. Buyer beware!

Reverse mergers into public shell companies is a process that rarely works and if, by some act of God, it is successful you still have countless issues to deal with that could crush your ability to succeed in an instant. Companies that sell shell companies and facilitate public offerings via reverse merger often have many fleas attached to the structure such as the fact that they retain 10% to 25%+ of the company’s shares that they can pump and dump anytime, resulting in a black eye to investors who see your stock plummet, resulting in almost certain bankruptcy and company failure.

Another prominent issue with this type of transaction is that usually the shell company has a complicated history of litigation and liens that you absorb when you merge and if this is the case you’ll spend all your time in ongoing legal battles as your company bankroll is spent on righting the wrongs of the previous owners. We could go on for days about the downside of reverse mergers into public shells but the moral of this story is, ‘do your homework’.

If you are trying to take your startup or small business public, take the extra steps (you’ll actually save money) and look into OTCBB, a legitimate, quick and long lasting way to take your company public without the drawbacks and definite complications of reverse mergers. You can take your company public via OTCBB for less than $100k and there are usually several ways to finance this process so you have minimal out of pocket expense.

Going public is easy when you team up with the right consultants that will help you bypass the dead ends and concepts that will take up your time and cripple your resources.

Want to find out more about Taking Your Company Public, call Princeton Corporate Solutions at 267-233-0183 Go Public easily, quickly and affordably.

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