Posts Tagged ‘taking your company public’

Taking A Company Public: The Secret Weapon for Stock Investors!

Saturday, April 10th, 2010

Selling Shareholder Offering: The Key To Raising Fast Capital For Pre-Public Companies. As a consultant who has taken many companies public on the OTCBB (Over The Counter Bulletin Boards), consulted on even more and turned around and structured more companies I can even count, there are a few common threads inherent in all of them.

Most of the companies pursuing capital from angel investors, private investors, private equity firms or small groups of professionals looking for a quick in and out situation with rapid capitalization did three things that made all the difference in streamlining their raise.

First the executives structured their entity to attract investors which by default strengthened their corporate infrastructure. Now they are proposing investment opportunities from more of a position of strength.

Second they chose a team (in these cases they chose our consulting firm) with a proven track record of success with organizing companies for acquisition, merger and taking companies public.

The third element that is common in most successful enterprises which are seeking a first round of seed capital to fund their ‘going public’ ambitions is demonstrating confidence to the investor with a “selling shareholder offering”. Obviously this last element tests the skill of the consultants going back and forth with the SEC during the comments stage but this demonstrates confidence and organization by the company wishing to raise capital.

A ’selling shareholder offering’ tells the investor (if not purely in the initial documents then in the phone conferences leading up the a check being cut) that the company has an organized pre public and post public investor relations strategy, general corporate publicity strategy and a market maker that’s built to last (mostly the former than the later). By offering seed investors the ability for massive profitability by buying your seed shares for fifty cents with a public offering price anticipated at $2.00. What real investor would turn this down?

Offer your seed investors an ‘easy in, quick out’ funding option and watch them swarm to your offering in droves. Let these investors create your float and let your company’s performance and hardcore investor relations take care of the rest!

For Corporate Consulting or Invest Seed Capital In Pre-IPO Companies, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

Over The Counter Bulletin Board – All The Answers Are Here! A Must Read.

Saturday, April 3rd, 2010

What Is the Process Of Taking A Company Public? Here Are The Answers!

Going public can make or break a company. As long as you are prepared it can be the biggest blessing ever bestowed on your company. Understanding the process can help you decide if this is a direction you’d like to take. Here is the process:

First you’ll need corporate structuring to create a business model that is conducive to raising capital and increasing investor confidence so you’ll need to take a long hard look at your ‘C’ level executives and their educational and professional pedigree and track record, your board of directors capabilities and abilities to contribute with capital connections and strategic alliances.

Second you’ll need to write a business plan that take into consideration a strong business model, financial projections that will stand up to the scrutiny of your SEC auditor and investors who have their investments audited by legal counsel and accountants while simultaneously painting a picture of a solid and viable, and yes, recession proof business model.

Third you will need a PPM to break your company up into shares to distribute to seed capital investors and stay within the SEC Regulation D requirements.

Fourth you’re ready to file your S1 and get into the comments stage. Be prepared to answer questions and be patient. The SE needs to understand your business enough to approve it. Some of their comments are pretty strange but it is what it is. Your best bet is to have a good securities attorney file for you.

Fifth you need your third party audit. This can be a large financial undertaking if your books are a mess and a good auditor can be in and out in around a month.

Sixth after the SEC approval you’ll have your market maker file your 15c211 with FINRA to get your approval and stock symbol.

Lastly, you’ll need a strong post public investor relations strategy to induce investment and calm down those who want to sell their stock. A good IR strategy will also bring into account massive amounts of traditional and viral publicity.

For Corporate Turnaround Services or Investor Relations and Publicity, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!

How To Take Your Company Public: Software Application Design Firms Can Raise Capital Fast!

Sunday, December 6th, 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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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