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Showing posts with the label financial solutions

What is a Blank-Check company?

Blank-check company is development stage company without specific business plan or purpose or that has business plan to engage in a merger or acquisition with an unnamed company. These type of companies are bound by Securities and Exchange Commission Rule 419 to protect investors therefore they may be subjected to additional requirements if they are registering securities for public offering. Because SEC views them as penny stock  or microcap stock there is more rules and restrictions imposed upon them. For instance blank-check companies are not allowed to use Rule 504 of regulation D that exempts companies from registration of securities for offerings up to $1 million. Companies are also required to fully disclose all terms and condition of the offering. Popular type of blank-check company is special purpose acquisition company (SPAC), created to pull funds in order to finance merger or acquisition within certain time frame. It is publicly listed company that rises money...

Make your company current again

The Pink Open Market as a part of OTC Markets Group provides platform for trading wide range of equities, which include penny stocks, shell companies, foreign issuers with limited information and companies not willing or able to provide information to investors. Since there is limited information available and limited regulatory oversight Pink market is considered to be of high risk.  Depending on level of disclosure companies are divided in three tiers as current information, limited information or no information. To qualify as a current information company have to make disclosure  available, in accordance with one of the following reporting standards: SEC reporting standard, U.S. reporting standard, international or alternative reporting standard. In the first two cases company has to be in compliance with SEC and Bank Regulator reporting requirements. Companies trading on Qualified Foreign Exchange  use international reporting standard. Other companies m...

What is the purpose of interim management?

Public companies often have two tier corporate organisation which consist of board of directors who protect shareholders interest and senior management who is responsible for day-to day operations and profitability of the company, including chief executive officer (CEO), chief operation officer (COO) and chief financial officer (CFO). When management is doing a good job business operations should run smoothly but as you probably know that is not always the case. In time of turmoil company can seek professional help in form of consultancy or more often by hiring an interim management whose job is to manage a company during a transition or crisis. Interim management is modern troubleshooting management techniques that started in the mid to late 1970s gaining a momentum during the decades to come. Even though it bears similarity with management consultancy, interim management can deliver more effective solution in less time. In simple t...

Mezzanine financing

Mezzanine financing named for its place in the capital structure, is a hybrid of debt and equity financing. Lender gives you a loan and if everything works out the company simply pays to loan back under already fixed terms. The truth is that large percent of new businesses fail so lender has the right to convert their loan into an ownership percentage or equity interest. This allows lender to have a claim to any future profit and protect himself in case of default. On the other hand mezzanine capital enables owner to keep full ownership as long as business is lucrative. It can also be used to persuade reluctant investor who sees your venture as a high risk by offering him mezzanine arrangement. If business fails to pay the loan lender is generally paid after venture capital companies and senior lenders are paid. Mezzanine financing is also offered to business with established reputation and products and history of profitability where process is completed with little due dilige...

Types of financing (part 1)

There are two basic types of financing: debt financing and equity financing. Debt financing happens when business borrow money from a lender at a fixed or floating interest rate for a specified period of time. The most important characteristic is that debt financing is that doesn't give a lender part of ownership. Terms of the loan are dependent upon what the loan is being used for. Loans are most common and popular sort of debt financing. Business usually borrows from commercial lenders like bank and they offer some collateral as a form of a security for a loan. Loans have fixed periods and they are pay in regular intervals with interest rate. They can be short term, medium and long term in duration depending on the needs of business. Short term loans are used for temporary and seasonal loans. The most common type of short term loan is line of credit, agreement between borrower and lender that establishes maximum amount that customer can borrow and use it ...

Chapter 11 financing and reorganization - Mina Mar Group

When you start your business you are so concentrated on growing and expending your business that you forget to consider the downsides of business cycles. Business cycles are sequences of economic activity that is characterized by four phases: recession, recovery, growth and decline that repeat themselves.Decline or downturn makes the end of growth period in the business cycle. It is characterized by decreased levels of consumer and reduced production. Maybe you missed to devise downturn business cycle management strategy and found yourself trapped in a situation where your creditors are hounding.  Toxic financing can demolish your life's work and erode your shareholder value. It happens when financier can convert preferred shares and convertible stock into common stock that they sell on the market in order to be repaid and earn a profit on investment. The formula for the conversion is structured so that there is no downside limit on the price received for converted ...

Business plan in capital advisory

One of the important services that we offer in Mina Mar Group is capital advisory. This is extremely important issue because most small businesses fail due to cash problems.Our focus in on offering the quickest and most cost-effective solutions to our clients while also defining and diminishing possible risks involved. Our objectives are accomplished in several different ways. One of them determination and assessment of the opportunities for growth of your company. We have ability to secure all sorts of funding and one of the must-haves in the process is well thought business plan that we can submit to financial institution or investor. Good business plan should include overview of the industry sector, analysis of targeted market, competitive  analysis, sales, marketing and financial plan.There are many more reason why you should write a business plan. First of all it is a great way to test viability of your business idea. Mina Mar Group will help you assess all ...

Opportunity for Chinese companies

Mina Mar Group has a unique approach to reverse merger. Our main objective is not to just seal the deal and make a quick dollar but to work with companies that have real substance, products, revenues and potential to grow. We will help them get publicly listed and beyond that helping them reach investors and building liquidity. Mina Mar Group is there every step of the way with their clients, leaving nothing to chance. Mina Mar Group primarily work with companies on U.S market offering them cross border listing services to our on the Frankfurt Stock Exchange but we also work with Chinese companies . Since 2008 Mina Mar Group we took over 100 companies from China public. Second largest economy in the world has to offer quality companies and we are glad to help them get listed on the U.S. stockmarket via reverse merger. We maintain a list of reporting and non-reporting companies and depending on what kind of company you are looking for and your budget we will find you the matc...

List your company on Frankfurt Stock Exchange

Mina Mar Group can open the door of completely new continent for your company. We are talking about cross listing of your company on the Frankfurt Stock Exchange. It is a great way to broaden your shareholder base in a Europe where is strong demand from both private and institutional investors to invest in small-cap and medium-sized public companies from U.S. together with benefits of trading locally. There are many other benefits of cross-listing: increased liquidity, opportunity to raise additional capital, increase in trading volume, decrease in volatility, enhanced visibility among overseas investors, possibility to tap into retail and institutional funds and benefit from changing global attitudes toward equity investing. Mina Mar will coordinate comprehensive investor relation and public relation program created to maximize dissemination of corporate information to potential investors. Frankfurt Stock Exchange was founded in 1585 and is operated by Deutche Börse AG. A...

Mina Mar Group - consulting services

It can be hard to navigate through complex processes like initial public offering (IPO), reverse takeover (RTO), mergers and acquisitions (M&A), raising funds and being financially compliant, organizing roadshows and communicating with investors but luckily you don't have to do it all by yourself. We at Mina Mar Group are dedicated to help developing companies reaching their goals through our expertise and widespread connections in business and investment community. We believe that each company is special and with their unique mission and vision, therefore our approach differ with every company we are helping reach success. One of main objectives in our consulting process is improving your business without tampering with what makes it unique. When we say that we will improve your business it refers supporting its growth.  Mina Mar Group will thoroughly research your company in order to have full assessment of the objectives and needs of your organization...

Capital Advisory - Mina Mar Group

The focus of the division of our capital advisory services is to offer the quickest and most cost-saving solution to the capital needs of our clients and also determine and reduce the risk involved in the process. Our objectives are accomplished in different ways: Determination and assessment of the opportunities for growth of private and public firms and private equity companies looking for opportunities to invest Deciding of the most viable investment and/or capital for different organizations Identification and assessment of the partners that are the best Reduction of risk through the use of due diligence Processing of the investment thesis of our clients and other important data to ensure    that financial goals are achieved Helping our clients throughout every stage of the process From private equity to the mezzanine, venture capital, strategic investment, debt, IPO, M&A, and much more, we have the ability to secure all sorts of ...

IPO and Private equity

We have already discussed benefits of an initial public offering. It enables you to raise huge amounts of capital, attract more attention from media and investors. When you go public shares of your company are like currency which can be traded which means that you can raise more capital by selling more shares.  Many of our clients who wish to go public also need private equity financing along way.  Even though our IPO process only takes between four and six months, companies need operating capital in order to continue building their businesses while waiting for the various IPO processes such as the SEC, FINRA, market makers and more. In simple terms private equity financing means that some individual or firm will invest in your company for a percentage of business. For a long time private equity investors only did business with large multi million dollar companies. Recently they have expanded into small business financing. It has its advantages from traditional l...

Regulation A for Publicly Reporting Companies

Regulation A will soon be available for publicly reporting companies. On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Act”) into law. Although the Act largely focuses on the banking industry and is being called the Dodd-Frank Rollback Act by many, it also contained much-needed provisions amending Regulation A+ and Rule 701 of the Securities Act. The Act also amends Section 3(c)(1) of the Investment Company Act of 1940 to create a new category of pooled fund called a “qualifying venture capital fund,” which is a fund with less than $10,000,000 in aggregate capital contributions. A qualifying venture capital fund is exempt from the registration requirements under the 1940 Act as long as it has fewer than 250 investors. Section 3(c)(1) previously only exempted funds with fewer than 100 investors. The amendment is effective immediately and does not require rule making  by the SEC, al...

Crowdfunding guidelines

U.S securities-based crowdfunding under Title III of the JOBS Act created a new exemption from registration for internet based securities offerings of up to $1 million over a 12 month period. The SEC adopted securities-based crowdfunding rules on October 30, 2015. Issuers were able to use the new exemption beginning May 16, 2016, when the final rules became effective. Regulation Crowdfunding enables eligible companies to offer and sell securities trough crowdfunding. Who are eligible issuers? Only U.S companies not registered with SEC are allowed. Investment and blank check companies are restricted. On the other hand there are no restrictions on eligible investors, both accredited investors and retail investors can participate but they have maximum limits per investor depending on their income and net worth. They have annual limits, if their income or net worth is less than $100,000 than limit is 5% of it and if it is above $100,000 it is 10%. Very limited resales of secur...

Mina Mar Marketing Group

Mina Mar Marketing Group (MMMG) enables organizations of all sizes to build powerful communication solutions and reach their goals. Communication enhances the performance of any company and our goal is to help our clients reach as many investors as possible. Investors always want to be up to date with their investments. MMMG mediates between public companies and their investors,  ceaselessly informing investors of the special events occurring within your organization. This information highway becomes a win-win situation between our clients and investors, as all decisions made become well-informed. We keep our clients' investors advised of the company's latest press releases and filings through our newsletter subscription subscription. Leveraging relationships and making contacts through public awareness always increases business opportunities. In fact, public awareness is within reach of any business, and always yields great results. Public awareness is particularly ...

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...

MinaMar Group - company overview

Mina Mar Group, Inc. is privately held company that is providing financial opportunities to help OTC and NASDAQ stocks grow. Mina Mar Group provides wide variety of services ranging from capital advisory, strategic communication and advisory, IPO services and process to merger and acquisition consulting services. With agent representations worldwide and with over dozen years in the business MMG has created a strong strategic alliances with some of USA based leading and reputable accounting, legal firms including experienced market makers, broker dealers and other service providers. MMG's alliance and resources allow companies to achieve and maintain the highest possible corporate governance, and meet the demands of today's sophisticated, accredited and or institutional investors. Mina Mar Group M&A services: Mina Mar Group provides comprehensive consulting services in the merger and acquisition sector. We specialize in the reverse mergers , matching emerging grow...