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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 ...

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 ...

What Is Cryptocurrency's Purpose?

Many elements of our lives have altered as a result of the digital era, including how we access information and communication throughout the world. With the introduction of cryptocurrencies, this pervasive digitization has left its stamp on money as well. But, you could wonder, what is the purpose of cryptocurrencies. In many respects, the emergence of cryptocurrencies typifies the digital era: after all, money is an abstraction of value exchange between individuals, and cryptocurrencies have the ability to measure, record, and transmit value transactions on a wider scale than ever before. These coins are run on decentralized communal networks and are available 24 hours a day, 7 days a week, from anywhere. In other words, cryptocurrencies are digital assets that are widely accessible and suitable for use in a digital environment. The Rise of Cryptocurrencies  Look no farther than the evolution of Bitcoin, the world's first cryptocurrency, to understand why cryptocurrency markets ar...

Equity

Equity Shares  They are categorized under long-term sources of finance because legally they are irredeemable in nature. For an investor, these shares are a certificate of ownership in the company by virtue of which investors are entitled to share the net profits and have a residual claim over the assets of the company in the event of liquidation. Various Prices of Equity Shares: - Par or Face Value - Issue Price - Share Premium and Share at Discount - Book Value - Market Value Types of Equity Shares: - Authorized Share Capital - Issued Share Capital - Subscribed Share Capital - Paid-up Capital - Rights Share - Bonus Share - Sweat Equity Share  Equity Share Investment Advantages: - Dividend - Capital Gain - Limited Liability - Exercise Control - Right Shares - Bonus Shares - Liquidity - Stock Split Disadvantages: - Dividend is not fixed/controllable - High Risk - Fluctuation in market price - Limited control - Residual Claim  Equity Financing refers to raising capital by g...

6 Types of Stocks

1. Blue Chip Stocks Stocks of a large and well established company that is consistently profitable. 2. Income Stocks Stocks that pay consistent and growing dividends in good and bad times. 3. Growth Stocks Stocks that are anticipated to grow at a rate above the average of the market cyclical. 4. Defensive Stocks  Stocks that pay a constant dividend regardless of the market conditions. 5. Cyclical Stocks Stocks affected by changes in the overall economy. 6. Penny Stocks Stocks with prices under $5 and are know to be volatile.

What to expect - Mergers & Acquisitions

It is not a secret that great deal of mergers and acquisitions fail due to various reasons. The whole process is important and takes time but it is equally important to know what comes after. Success depends on how company handles many responsibilities that come with new situation. New corporate structure, reallocation of resources and becoming acquainted  with new customers are just some of the things that you will need to manage. It is not unusual for a company to hire a third party to help them smooth transition. When CEO and board of directors decided that they want to acquire or merge with particular company they will usually start with tender offer. It is permitted to buy up to 5% of outstanding shares of the company without having to file with SEC. If that number is bigger it is mandatory to file with SEC, disclosing number of shares in possession and if there is intention to acquire the company.  With help from financial advisers final price for the compa...

Going through Acquisition with Mina Mar Group

An acquisition is the purchase of one business or company by another company. It happens when acquiring company buys most or all target company's shares in order to take control and or other assets of the company. They have to buy more than 50% of ownership. In acquisition usually bigger company buys smaller company and absorb it or run it as subsidiary. Roll-ups or consolidation happen when two or more companies combine in a new business entity. Acquisitions are divided into "private" and "public" depending on whether acquired or target company is or is not listed on the public market. Additional dimension or categorization consists of whether an acquisition is friendly or hostile (hostile takeover). More mergers and acquisitions happens with small to medium size companies. One type of acquisition is reverse merger or reverse takeover enables private company to be publicly listed in a relatively short time frame. Reverse merger occurs when a privately ...

Mergers & Acquisitions - what is the difference?

Mergers and Acquisitions (M&A) is the area of corporate financing, management and strategy dealing with purchasing and or joining with other companies. It is an umbrella term for various transactions such as mergers, acquisitions, consolidations, tender offers, purchase of offers and management acquisitions. In mergers and acquisition two companies are involved but in merger two companies are combined in one and in acquisition one usually larger company buys another smaller company. From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas acquisition occurs when one entity takes ownership of another entity's stock, equity interests or assets. From a commercial and economic point of view, both types of transactions generally results in the consolidation of assets and liabilities and liabilities into one entity and the distinction between a merger and an acquisition is less clear. Even though they are used as synonyms t...

Why are roadshows important for your business?

Is there better way to communicate with your clients and investors than face to face? If you think there isn't than road show might be the answer you were looking for. What are they and why are they so important? Roadshow is series of meetings where representatives of the company give a  presentation about investment opportunity to current and potential investors. Companies have variety of reasons why they conduct road shows. The most common reason for organizing a road show is an initial public offering (IPO), a process when previously private company offers its shares to be publicly traded on stock exchange. Other reasons for a road show include privatization of a government owned company or when a company is when a company makes secondary offering of shares in order to raise more money.  A non deal roadshow (NDR) occurs when executives hold discussion with current and potential investors without offering securities for sale. Main reason for NDR ...

What are pros and cons of going public?

Many companies will consider going public as a next step in their development.  While going public offer number of benefits to a business it can be tricky if you haven't carefully weighted advantages and disadvantages before you started process of going public. Going public is probably the most crucial decision for a company because it will not only affect your financing but also other aspects of your business. Companies that want to go public mostly engage in initial public offering (IPO) process but there are other alternatives for company to go public and trade their share on exchange   e.g. reverse  takeover. Going public offers many benefits to the company but there are also some drawbacks so company's management has to take into consideration many factor before making decision to go public. Pros of going public: There are many reasons why companies go public ant their reasons vary just like the benefits and challenges they fac...

What is the purpose of a shell company?

A shell company or shell corporation is a company that doesn't have active business operations in other words it is a company that doesn't make money and doesn't provide clients and customers with services or products. The name itself doesn't describe the purpose of business entity but it classify it according to its role in a particular corporate structure. Shell companies can be formed in more than one way and not all shell companies have the same purpose. To become a shell company interested party must file with the SEC while some other shell companies have previously had operations that shrunk that shrunk due to unfavorable market conditions or other reasons. Also any start-up company that register with SEC is technically a shell company. This type of corporation is legal but it can sometimes be used in illegitimate way. Legal use of shell company has many benefits: Shell companies can be used to hold stock or intangible assets of another business. New ...

What is alternative to IPO?

Reverse merger is a good alternative to traditional initial public offering. Reveres merger is the acquisition of a public company by a private company when shareholder of a private company purchase control of the public company and then merge it with a private company. In this way lengthy and complex process of IPO is bypassed. Publicly traded corporation is called shell because that company usually doesn't have any assets or net value but only its organizational structure.  What reverse merger does is that it separates the going public process and capital raising function. Is is basically conversion mechanism that turns private company into public company. Raising capital is not priority but benefits that come with being a publicly traded company. This separation is the main reason why reverse mergers has so much benefits. private company doesn't have to hire investment bank for underwriting and marketing the shares the process is less expensive ...

How to successfully manage IPO process

IPO Process The process of taking a company public requires a significant amount of work and knowledge of the reverse merger or IPO process. The assistance of a top team including an experienced securities lawyer is also mandatory for a successful outcome. Mina Mar Group not only manages the entire process, but also provides a competent and proven team of internal & external staff and resources. The Mina Mar Group turnkey process starts with your decision to go public and ends with your company acquiring a ticker symbol and raising capital. Mina Mar Group doesn’t just take you public. We engage stock distribution and investor relations firms to ensure that the offering is distributed far and wide, in order to raise the most capital at the best price for your company. Going Public – The Process 1.Internal company agreement to go public Management will present the concept of going public to the Board of Directors so they may consider the option. Included in this presenta...

Dual Listing

Dual listing also known as interlisting or cross listin is when a company list equity shares on two or more different stock exchanges. Companies use dual listing because of its benefits such as additional liquidity, attracting more capital and possibility to trade shares for a longer periods if exchanges are in the different time zones. MinaMar Group provides dual listing conulting services so you can be sure to recieve all the benefits of dual listng. We can open the door to a completely new continent. Cross-border listing broadens the potential shareholder base, reaching the many European investors who are interested in U.S.-traded companies, but want to trade locally. Cross-border listing, sometimes referred to as dual listing, can provide another way for companies to tap into the opportunities of a changing global capital environment. Mina Mar Group can then coordinate a comprehensive investor relations/ public relations program designed to maximize the dissemination of cor...