Raising Capital Using a Public Company

Going public in this mode is ideal for companies that may not be large adequate to attract an investment banker for an initial public offering and those that don’t need to raise capital immediately. They desire to travel public because of the many benefits that being a public company offers such as as increased valuation, using public stock as currency to get other companies and assets, liquidity, prestige and to reduce the need for expensive venture capital and other funding sources. It also do it easier to raise capital since once you go public it gives you credibleness and a benchmark trading terms to raise capital against.

Public companies are typically valued higher than their private counterparts. So, what many sophisticated CEO’s and CFO’s make is travel public without simultaneously raising capital and thus have a higher evaluation and benchmark stock trading price. Then, as a public company, they make a private arrangement at a deep price reduction to the market with the proviso that the investors throw the stock for 1 year. That is why investors get the terms reduction from the unfastened market trading price.

As an example, a company travels public without initially raising capital and gets trading on the unfastened market at United States $10.00 per share. An individual tin travel on the internet or walk into any stock brokerage firm and purchase stock at $10.00 per share. Populace companies in this state of affairs often sell stock in a private arrangement at a very significant terms reduction to the unfastened market price (in this example, perhaps $5.00 per share). The investors throw to hold the stock for a clip period of time. (The issuers can sell the stock themselves or have got small broker/dealers help them.) Because investors can purchase the stock at a deep terms reduction to the unfastened market price it give them quite an inducement to invest. Thus making it easier to raise capital.

This is extremely valuable and a very helpful tool when you are raising capital. It may assist some to re-read the above illustration to fully comprehend how it do it easier for you to raise capital. The president of our company is a very experienced Securities Attorney.

We help companies in going public on the NASDAQ, the NASD OTCBB (National Association of Securities Dealers Over the Counter Bulletin Board) or the NQB (National Quotations Agency – Pink Sheets).

In fact, if a company is interested in Going Populace they may desire to get trading on the Pink Sheets. There are NO audits, NO periodical second reporting and they make not have got to deal with Sarbanes Oxley. It also is very fast and relatively inexpensive. A company can initially get trading on the Pink Sheets if they desire to go public quickly and, if they choose, can merchandise on the OTCBB later very easily.