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Showing posts with the label ipo

OTC stocks more difficult to trade and deposit

  Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...

How important marketing is for Regulation A?

  Regulation A+ represents the lately enacted SEC rule that amends and expands the rarely utilized Regulation A offering exemption. Regulation A+ might be viewed as an alternative to a small registered IPO and also, as a substitute or addition to other securities offering procedures that are not subject to registration under the Securities Act.  Although Regulation A+ is still quite new, it is swiftly establishing a name as the perfect spot for so many American businesses looking for capital. Reg A+, which is supported by the SEC, actually permits non-SEC reporting corporations to raise capital from public investors while also allowing (or even more motivating) the issuer to publicize their offering openly.  The opportunity to publicly market to investors has benefited greatly for numerous corporations.  This method is intended to reduce regulatory constraints by allowing companies who wouldn’t have contemplated pursuing total IPOs to get the type of financing necess...

Reverse Takeover (RTO)

A reverse takeover (RTO), sometimes known as a reverse IPO, is the process by which a small private business acquires a bigger, existing publicly listed firm in order to go public. Because the smaller firm is taking over the larger company, the merger is going place in "reverse" order, which is unusual. Benefits of a Reverse Takeover 1. No need for registration Because the private business will acquire the publicly traded firm through the mass purchase of shares in shell companies, unlike an IPO, the company will not require registration. 2. Less expensive A tiny private company's decision to go public through an Initial Public Offering (IPO) is not simple. It has the potential to be extremely costly. The cost of a reverse takeover is often a fraction of the cost of an IPO. 3. RTO saves time The registration and listing procedure for an initial public offering (IPO) can take months or even years. A reverse takeover shortens the time it takes to go public from many months ...

Risks and rewards of bull market

Bull market is market trend when price of assets or securities rise by 20%, an opposite from bear market. The term bull market is usually used when talking about securities but the term applies to anything that can be traded, real estate, currencies and commodities . During bull market all three major stock indexes, S&P 500, Nasdaq and Dow Jones Industrial Average rise. Bull market happens in healthy economy and is characterized by investor confidence and optimism. The term can be also applied to investors, ones that have optimistic view of the market is called bull or bullish. On the other hand investors with pessimistic view of the market are called bears or bearish. Natural rise and fall of economic growth over time is known as business cycle and it has four phases: expansion phase, peak, contraction and through. Bull market happens during expansion phase when economy is growing with strong GDP, with drop in unemployment and strong corporate profits. In stock market...

Direct public offering

Direct public offering also known as direct listing or direct placement is a type of offering where company offers securities directly to public in order to raise capital. It is considered alternative to initial public offering but unlike in IPO company that uses direct listing eliminates intermediaries like investment banks that underwrite stock, making stock price dependent on the market. In direct listing employees and early investors convert their ownership into stock that is then offered to the public meaning that no new shares are issued which stops stock dilution. Because in DPO middle man in form of investment banks, broker-dealers and underwriters is eliminated it enables issuer to sell shares quickly, without the lockout period. It also makes the offering cheaper because there is no underwriting fees to pay and faster because there is fewer thing to manage than in traditional IPO. Underwriters  not only set the IPO price but they also organize roadshows, fil...

What are Blue sky laws?

In addition to federal securities laws, every state has its own securities laws, commonly known as Blue sky laws that are designed to protect investors from fraudulent and overly speculative investments. While these laws vary from state to state but they are modeled after Uniform Securities Act of 1956 which provides guidance for the states in making their own securities legislation. Most state laws require from companies that offers securities to register the offering before they can be sold unless there is exemption. Each state has the regulatory agency that administers its blue sky law and most of them ensure private cause of action for private investors harmed by securities fraud. Issuers of securities must reveal terms of the offering where they fully and fairly disclose all material facts related to the offering. Because they differ among states it means that each jurisdiction can have different filing requirements.State law also cover merit review that regu...

Listing your company on Nasdaq

NASDAQ or the National Association of Securities Dealers Automated Quotations is an American stock exchange, second largest stock exchange in the world after New York Stock Exchange (NYSE) in terms of market capitalization. It was founded in 1971 as the world's first electronic stock market. In 2006 Nasdaq changed its status from a stock market to a licensed security exchange. With approximately 3,900 listings Nasdaq has market capitalization of around $10 trillion from various industry sectors like technology,  telecommunication, healthcare and financials. Nasdaq's normal trading sessions are between 9:30 a.m. and 4:00 p.m. Eastern Standard Time and offers quotes at three levels. The Nasdaq stock market has three distinctive tiers: The Nasdaq Global Select which consist of U.S. based and international stocks that represent the Global Select Market Composite. It has the most stringent financial and liquidity requirements. The Nasdaq Global market includes stock that...

Market value ratios

Often when you read the business section of newspaper or when you are doing research about particular company on the stock market you come across different ratios. There is so many of them so if you are not accredit investors there is a chance that zou sometimes get confused but these metric are actually helpful if zou know how to interpret them. Bascically they measure quantitive assesments commonly used for comparing and tracking performance. That is why are so widely used by analysts in assesing performance and investing recomendation and by company's mangement also. Depending on the goal of analysts he will choose from range of available data to build metric suitable for that same goal. Company's executive and project managers have differenet goals so they will use different metrics, while the first will concentrate on corporate finance the other will focus on strategec projects. Following the previous article on due diligence we will primarily focus on the positio...

What is common stock?

A stock is a type of security that signifies peace of ownership in a corporation an represents a claim on a part of the corporation's assets and earnings. There two main types of shares: common shares and preferred shares. There are clear distinction between two types of shares, primarily based on voting rights and dividend payments. Common shares are also know as ordinary shares, voting shares or equity shares. First ever common stock was established in 1602 by Dutch East India Company and introduced on the Amsterdam Stock Exchange.  During initial public offering company offers shares for sale and in that way sells part of the company in order to raise capital. Underwriter helps company to determine type and pricing of offered securities. After IPO company's shares become publicly traded and company can issue new stock. Percentage of shareholders' ownership is determined by the number of shares in his possession, which are some percentage of total number of out...

Emerging growth companies

Just like smaller reporting companies that we mentioned in the previous article emerging growth companies are entitled to reduce regulatory and reporting requirements under the Securities Act and the Exchange Act  But which companies qualify to be in this category. Emerging growth companies are companies that have total annual gross revenues less than $1.07 billion (initially $1 billion, but the it was adjusted in April, 2017 for inflation) during most recent completed fiscal year and companies retains that status under certain conditions. That is, annual revenues must not exceed $1,070,000,000 and it must not issue more than $1 billion in non-convertible debt over the past three years and must not become large accelerated filer.  Firm  remains being emerging company during the first five fiscal years  after completion of an IPO. A company could not be an emerging growth company if it completed its IPO on or before December 8, 2011 because this cat...

Smaller reporting company

Reporting company or reporting issuer is a company that is obliged to file periodic reports under section 13 or 15 (d) of Securities Exchange Act. There are couple of reason why companies become reporting issuers. One of the reasons is securities exchange listing. Before securities can be traded on one of the exchanges they must be registered with Securities and Exchange Commission. Another reason is size threshold. If company has assets worth more than $10 million and a class of equity securities held by 2,000 person or 50 or more non accredited investors. Companies that issue securities but are not listed on any exchanges are also subject to Securities Exchange Act. In the first two cases company must file periodic and current reports. SEC divides reporting companies that file periodic reports under Securities Exchange Act of 1934 into different categories based on size among other factors. Smaller companies have less stringent reporting requirements and are exempt from ...

Being a public company - what it means?

In simple term public company is company whose shares are publicly traded on one or more stock exchanges or over the counter market (OTC) and that ownership is dispersed among the many investors. History of public market dates back in early modern period when Dutch helped lay foundation of modern financial system. Publicly traded companies usually have many investor while privately held companies had fewer, but company with big number of investor doesn't have to be public company. Securities and Exchange Commission (SEC) states that every company with more than 500 investors and more than $10 million in assets must register with SEC and adhere to its regulations. Most public companies where private and after that they meet requirements to become publicly traded company mainly because it brings many advantages. Public companies are able to raise capital  through the sale of stock in a way shares become company's currency which is then traded on the market. Before it w...

Going public in Canada

Are you thinking of Going Public in Canada? Are you Seeking Investment for your Products, Services, or a Business Plan? Considering Venture Capital? Or just, a source of ongoing capital to properly grow your business? Canada has a robust capital market, as well as strength in funding growth ventures. Getting access to funding opportunities can be facilitated by becoming a public company on the CSE stock market. Being a Publicly Traded Company provides access to the Canadian Capital Markets and the many pools of Public Venture Capital that are available to emerging companies. It raises your corporate profile and puts you "on the radar" as a suitable investment opportunity for investors.  In Canada, the main choices of going public are the Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSX-V), and the CSE - Canadian Securities Exchange.  We invite you to consider the advantages of NEO or CSE as a destination to take your company public. Companies that go p...

Mina Mar Group - what we value

Mina Mar Group has a mission to use collective set of skills from our executive team to  provide our clients with the tools, expertise, investor network and funding sources to fuel their growth. We believe in companies with substance and high growth potential that truly deserve to be listed on the stockmarket. The values we endorse are reflected as a tangible results in our clients' performance These values empower us to achieve client, company and individual success and are carried out in pursuit of excellence and acting with integrity. Initiation - turn your thoughts into action. If you are principal in your company that meats our requirements talks to us first. It is important to make a first step and know where you stand. Sometimes your dreams can be bigger than your budget but we at Mina Mar Group have various affordable options for you that will make your dreams a reality.  Innovation - we like to create new solutions and overcome obstacles. At Mina Mar...

Our perspective on reverse merger

When we are talking about market perspective usually the financial community is mostly focused on private companies that want to go public and are prepared to pay for the privilege of going through an IPO or reverse merger. That is why most financial consultants are looking for the public shell company just to close the deal. Often private companies that use reverse merger to go public are ill-informed on ability to raise funds, unprepared for the intensive effort and extensive costs to create liquidity. This can even lead company to become a shell itself due to lack of action in implementation of needed solutions. This way there is no long term benefit on both sides. Mina Mar Group sees things quite differently. Instead of making quick profit shared between shell owner and us. We deal with private companies that already offer profits  and that truly deserve to be publicly traded and can attract investors at the retail and institutional level and build...

Funding startups by Mina Mar Group

It is very likely that you hear about some new promising company or you want to start your own company. There are a lot of good ideas out there but not all are going to be implemented and launch successful companies. Sometimes the link that is missing is so much needed funding at the right time in seed stage. At Mina Mar Group, we help companies that are in early stage through detailed plans to get viable solutions to funding for the growth of emerging organizations. Early stage companies are typical pre-revenue and pre-profit and they usually seek capital to invest in product development, building team of employees and trying to build sales channels. Startup companies still have a lot to go in their business journey before they reach positive cash flow and that is the major reason why they are in need of funding. Reaching financial independence often comes in the form of initial public offering, reverse merger and acquisition. Sometimes the first-hand investors will be friends...

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...

Going Public with Mina Mar Group (part 2)

In the first part of the article we mentioned prospectus. To be sure that all information in the prospectus are true and pertinent it is necessary to do due diligence. It will be performed by your accountants and our experts at Mina Mar Group. The business objective, position among competition, management, business plan and performance, financial situation will all be carefully evaluated by MMG. The review process also involves getting information about the customers, vendors and industry sector of the company. As we get more information we will make changes in the prospectus and fill in missing information. The drafted prospectus will be filed and presented by Mina Mar Group to the Securities and Exchange Commission (SEC). As we already mentioned prospectus is standard part of an IPO process. It ensures that important information regarding the issuing securities are disclosed to potential investors. Preliminary prospectus ("red herring") is the first offering docume...

Going public with Mina Mar Group (part 1)

If you have decided to take your company public, that is a great news because it brings many benefits with it like financial benefit from raising capital or increased public awareness of the company. But before you make any step further internal agreement within a company must be accomplished. Top management should present the detailed idea of going public  to the Board of Directors. Once the the idea is approved by the board, the next thing to do is to assemble the suitable team and Mina Mar Group is here to help you. We will acquire the services of security attorney and make  recommendation of an accounting firm who will assist you in auditing financials. Financial statements will be reviewed with care and we will make sure they are in compliance with Generally Accepted Accounting Principles (GAAP).  Agreement between your company and Mina Mar Group will be formalized, outlining plan, process, time, price ranges, fees, size of the offering and other impor...

How can we help?

Mina Mar Group has been helping publicly owned companies in building a relationship that is beneficial to them and their shareholders since 2005. Our specialty and focus lies with small cap for both companies in reporting and non-reporting sector.  Even if you have private company and you are planning to go public we can find equity lenders that will provide you with funds trough the use of traditional systems. Financier security will be the equity of your business and the undertaking of the process will show that your company will be taken public in about year or two. Reverse merger, also known as reverse takeover is used for this process as Mina Mar Group specializes in merger and acquisition consulting services. We own a stock of of affirmed and clean public shells that are provided for reverse merger for our clients  as a publicly traded vehicle that can be used to get capital. Likewise, we offer diverse financing options, including private...