Raising Capital Using a Public Company



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Summary:
They want to go public because of the many benefits that being a public company offers such as increased valuation, using public stock as currency to acquire other companies and assets, liquidity, prestige and to reduce the need for expensive venture capital and other financing sources. The president of our company is a very experienced Securities Attorney.

We assist 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 Bureau ' Pink Sheets).

In fact, if a company is interested in Going Public they may want to begin trading on the Pink Sheets.


Article:

Going public in this manner is ideal for companies that may not be large enough to beguile an underwriter for an IPO and those that don’t need to raise all-absorbing immediately. They want to go public cause of the many benefits that actual a public workbench offers such as increased valuation, using public stock as currency to capture other companies and assets, liquidity, prestige and to reduce the need for expensive venture fiscal and other financing sources. It also makes it easier to raise wealth since once you erupt public it gives you credibility and a criterion trading price to raise top-notch against.

Public companies are typically valued higher than their private counterparts. So, what many sophisticated CEO’s and CFO’s do is go public without simultaneously raising auspicious and thus receive a higher valuation and standard stock trading price. Then, as a public company, they do a private placement at a deep discount to the market with the provision that the investors hold the stock for 1 year. That is why investors get the discount from the open market trading price.

As an example, a collection goes public without initially raising resorts and begins trading on the open market at US $10.00 per share. An individual can go on the internet or walk into any stock admission firm and buy stock at $10.00 per share. Public companies in this situation often sell stock in a private placement at a very substantial discount to the open market price (in this example, perhaps $5.00 per share). The investors accede to hold the stock for a period of time. (The issuers can sell the stock themselves or have small broker/dealers be instrumental them.) cause investors can buy the stock at a deep discount to the open market price it give them quite an incentive 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 help some to re-read the tiptoe example to fully comprehend how it makes it easier for you to raise capital. The president of our cabal is a very experienced Securities Attorney.

We doctor companies in going public on the NASDAQ, the NASD OTCBB (National council of ministers of Securities Dealers Over the Counter notification Board) or the NQB (National Quotations secretariat – Pink Sheets).

In fact, if a division is interested in Going Public they may want to set sail trading on the Pink Sheets. There are NO audits, NO periodic SEC reporting and they do not have to deal with Sarbanes Oxley. It also is very fast and relatively inexpensive. A salon can initially found trading on the Pink Sheets if they want to do over public quickly and, if they choose, can trade on the OTCBB later very easily.



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