We assist companies in Going Public.  There are nearly 15,000 public companies in the U.S. We can help your company Go Public on the NYSE, AMEX, NASDAQ, OTCBB, Other OTC or Pink Sheets.

The NASD OTCBB (over the counter bulletin board) & Other OTC as well as the Pink Sheets .  Most of the smaller companies go public first on either the NASD OTCBB , NASD Other OTC or the Pink Sheets. They can quite easily
move up later to NASDAQ.

In fact, if a company is interested in Going Public they may want to begin 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 fast and relatively inexpensive. A company can initially begin trading on the Pink Sheets if they want to become public quickly and, if they choose, can trade on the OTCBB later.

There are a variety of ways of going public. One way for a company to go public is an IPO. In an initial public offering a company is doing two things simultaneously. One it is raising capital; the other it is going through the procedure of going public. We assist companies with the second part which is becoming a public company and having its own stock symbol and public stock which people can buy from their broker or online like any other public company.

Going public in this manner is ideal for companies that may not be large enough to attract an underwriter for an IPO and those that don't need to raise capital immediately. 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. It also makes it easier to raise capital since once you become public it gives you credibility and a benchmark trading price to raise capital 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 capital and thus receive a higher valuation and benchmark 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.

 

 How to Use the Power of a Public Company

As an example, a company goes public without initially raising capital 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 brokerage 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 agree to hold the stock for a period of time. (The issuer can sell the stock themselves or have small broker/dealers assists them.) Because investors can buy the stock at a deep discount to the open market price it give them quite an incentive to invest.
 

Discover the Truth about Reverse Mergers and Public Shells

The other way many companies go public is through reverse mergers with public shells. When doing a reverse merger with a public shell it can be very expensive and there are several things you must be aware of.

There are several types of public shells which are all very expensive. They are also usually loaded with liabilities. If you reverse merge a company into a public shell (which usually has 100 or more shareholders and a lot of shares in the float) when the stock price goes up these 100 shareholders inevitably sell the stock and the price collapses. This can be detrimental to a company trying to grow through acquisition.  This is far more expensive than the up front price paid to do the reverse merger with the public shell. Please keep this fact in mind when you are dealing with reverse mergers or public shells. This point is absolutely critical to understand. If you do not understand the importance of the public float your going public experience can be disastrous.

There are also non trading public shell companies. These reporting companies usually have 1 or 2 shareholders and they are virtually useless. They are a gimmick used by stock promoters to sell you something. It actually takes longer than if you were to just take your own company public from scratch. The non trading shells just add an extra step and do not save you anytime whatsoever. In fact they take longer than if you were just to start the process from scratch.

Many people think you need to do a reverse merger with a public shell to go public, which is incorrect. Others think that doing a reverse merger with a public shell is faster. Again this is another misconception. For example, to start trading on the Pink Sheets is very fast. A company can always move up to the NASD OTC Bulletin Board or NASDAQ later. Some companies choose to start out on the Pink Sheets and later move up to NASDAQ or the NASD OTC Bulletin Board. A company can also elect to begin trading on the NASD OTCBB from the outset.

Also recent changes in the law have made many practices dealing with reverse mergers and public shells fraught with problems. It is always recommended you have a very experienced Securities Attorney assist you whenever dealing with Public Shells. If you are considering a reverse merger with a public shell contact us before making any costly mistakes. We would be happy to explain why there are better, quicker, easier and less expensive ways of going public.

 

Learn More about Becoming a Public Company

We offer report on Going Public with your company as well as a free consultation.

We have the unique perspective of being a firm headed by a very experienced Securities attorney. An attorney who has worked and been involved in many transactions involving publicly traded companies including private and public offerings as well as a variety of mergers and acquisitions. In fact he advises other attorneys who have limited experience in this very highly specialized field.

We have reports and newsletters that deal with news, updates and information on the following subjects: taking your company public, investment banking, corporate finance, stock market, investments, stock exchanges, venture capital, business finance, Mergers and Acquisitions, Market Makers, Corporate Mergers Business to Business Updates, Sarbanes Oxley Act, SBA, (Small Business Administration), SEC (Securities and Exchange Commission), securities law, securities, corporate governance, Edgar, 15c211, private placement memorandums, PIPES Offerings, venture capital, securities attorneys, intellectual property, strategic alliances, joint ventures, technology licensing and market makers.

If you are a CEO (Chief Executive Officer), CFO (Chief Financial Officer), CIO (Chief Information Officer), consultant or business Owner, we would be happy to consult with you about the many benefits of having your company's stock listed for public trading on a stock exchange, NASDAQ, OTCBB or the Pink Sheets.

 

Joint Ventures and Strategic Alliances

We are interested in doing joint ventures and strategic alliances with stockbrokers, private equity funds, registered investment advisers, mergers and acquisitions firms, CPA's (certified public accountants), securities lawyers, consultants, technology consulting firms, financial planners, investor relations firms, financial intermediaries, finance companies, patent agents, licensing consultants, business brokers, merger consulting professionals, securities brokerage firms and others.

 

Go Public Program

We are with you every step of the way through the entire process. We can assist you in incorporating your business right through to getting your stock symbol and listing your stock for public trading.

We have a  report on Going Public for those interested in taking their business public.

We also offer consultation to presidents, senior executive management, mergers and acquisitions consultants and consultants of companies considering going public.

Referrals from CPA's, Business Brokers, Securities Lawyers, Accounting Firms and Financial Investment Advisors are welcomed.

Sophisticated CEO's, CFO's and Financial Professionals realize a public company is a very powerful tool. This is one of the methods they use to raise capital more easily.

 

Pink Sheets

The electronic "Pink Sheets" (National Quotations Bureau) do not require regular reporting with the SEC nor audited financials. There are also no asset or revenue requirements. Companies such as Rolls Royce, Nestle, and Heineken trade there. Many CEO's are choosing the "Pink Sheets" now because it offers many of the advantages of the OTCBB and NASDAQ without the SEC reporting requirements and audited financials.