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Showing posts with the label continuous offering

Registration statement

Registration statement is set of documents including prospectus which company must file with Securities and Exchange Commission before it proceeds with public offering. It contains two principal parts: prospectus and additional information and  exhibits that must be filed with SEC but not necessarily revealed to investors. Company can use form S-1 to prepare registration statement and add any information that is necessary to make disclosure not misleading. Prospectus is "selling" document that must be offered to anyone who is offered or buys security. Distribution of prospectus to potential investor is usually done by underwriters or brokerages but they are most widely distributed through websites such as EDGAR (Electronic Data Gathering Analysis and Retrieval System). In prospectus company must clearly describe important information about business operation, financial statement, biographies of officers and directors, detailed information about their compensation...

Raising capital with Mina Mar Group

When you talk about raising capital usually the first thing that comes to mind is traditional initial public offering (IPO) and even though it is the the good way to rise significant amount of capital. It is especially useful if you want to avoid borrowing money from traditional sources. In the primary offering, when a private company is selling their stock for the first time they get the influx of capital. Most of that capital is used to expand business and improve profitability of the company by investing in research and development of products and services,marketing and advertising, hiring skilled and experienced personnel, buying assets, etc. Being public also opens many financial doors mostly because public companies are under scrutiny and they have to issue quarterly/annual reports and do audits. For example it is easier to borrow additional capital at a favorable rate. Mina Mar Group can help you go trough every stage of the IPO process, from drafting the p...

Strategic differences between Tier 1 and Tier 2

Under the Securities Act of 1933 all offerings must be registered with the SEC or be exempt from such registration. Regulation A contains rules that provide exemption from the registration requirements. It's main purpose is to allow small and medium sized companies to access more capital because cost for registration with SEC are to high and only accredited investors are allowed to participate on the offering. On March 25, 2015 Securities and Exchange Commission adopted final rules to implement Section 401 of Jumpstart Our Business Startaps (JOBS) Act. As a results Reg A was split into two different tiers. Tier 1 for securities offering of up to $20 million in one year period and Tier 2 for securities offering of up to $50 million in a one year period. The final rules for offerings under Tier 1 and Tier 2 are built up on already existing Reg A, with some modifications. Both Tiers must meet certain basic requirements like company eligibility requirements, bad actor disqua...