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Showing posts with the label small-cap

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...

Understanding major market indexes

Market indexes prove summary of overall market by tracking some of the top stocks on the stock market in the United States and they show in which direction the market is going. Indexes don't represent every company but selected portion of the market. Some indexes track small and mid cap companies, some large companies or companies within certain sector. Three major market indexes are Dow Jones Industrial Average, S&P 500 and Nasdaq. They differ in number of companies they track and calculations they use. Dow Jones Industrial Average It is the oldest market index of the three and some the most popular in the media.Journalist Charles Dow, founder of Wall Street Journal created the index that tracked the movement of the whole market, together with statistician Edward Jones on May 26, 1986. The original Dow Jones index had two industrial companies and ten railroads. He realized that two industrial companies are becoming more important and created a new Dow Jo...

Why is Jobs Act important?

Jumpstart Our Business Startups Act or JOBS Act is a law that former president Barack Obama signed on April 5, 2012. The purpose of the act is to increase ability of small businesses to raise capital and generate jobs but also improve financial opportunities for all American citizens and not just wealthy investors. Of all seven titles of the bill Title III that refers to crowdfunding drew most attention. Provisions of the bill made easier for companies go public but also to raise capital and stay private longer. Act defined the term emerging growth company as a company that has less than $1 billion total annual gross revenue in recent fiscal year. The JOBS act provided such businesses with temporary relief from certain SEC requirements which made taking your company public a lot easier. The most significant relief are the exemption from audit of internal controls required under Section 404(b) of the Sarbanes-Oxley Act of 2002. It allowed new exemptions from registratio...

What is toxic financing?

Many small-cap and micro-cap companies are in a need of additional capital. Obtaining funding can be tricky and it is best to have someone experiences to advise you about financing proposals. Many of the offers can seem legit at first sight but if you look deeper they are just  camouflaged toxic financing contracts. The real question is what is toxic financing and how you can recognize it? Toxic financing can be defined as convertible debt or preferred stock that allows financier to receive unlimited number of common shares by converting their debt. This type of debt has low chance that it will be repaid because it carries an interest rate that company usually cannot repay. Financier uses this situation to convert debt or preferred shares to common shares and sell them on the market. Formulas that are used for conversion in toxic financing  is structured so there is no downside limit on the price for converted shares. It gives discount to the marke...

Investing in Penny Stocks

Not all stocks fulfill listing requirements for major stock exchanges like Nasdaq and NYSE but they trade on over the counter market (OTC). Even though many believe penny stock trade less than a $1 per share, Securities and Exchange Commission defines them as a securities issued by small-cap and micro-cap companies that trade under a $5 price. Because of their low price penny stocks are often logical beginning for new investors. What this means is that you can buy thousands of shares of various companies without investing significant financial means. You may even hear from some investors that they joined "one million club" owning million shares of the same company trading on OTC. With such big numbers of shares, price raise of even few cents can bring nice gains for investor. Some may be attracted to penny stock because they are dreaming of big profits, buying shares for couple of cents and selling them for millions. Even though penny stocks can be lucrative there ar...

Quarterly report

Quarterly report is set of financial statements issued by a company at the end of fiscal quarter on a SEC form 10Q. It is a report of company performance during the specified period which helps investors to feel pulse of the company by getting insights into business performance and growth rate and provides them with future outlook. Federal Securities law require from public companies to to provide certain information. Form 10Q has two parts that have to disclose relevant information regarding the company's financial position. First part contains unaudited financial  statement (income statement, balance sheet, cash flow statement) for the quarter and year-to-date and results from previous year for comparison. It also includes management discussion and analysis of the company's financial condition, disclosure about risk factors that may affect the value of the company, internal controls. Second part contains all other pertinent information, including legal proceedings, u...

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 ...

Buying or selling company?

Reverse merger brings many benefits so it's no wonder that many private companies decide to use it as a means of taking their company public. It is considered less costly and less time consuming alternative to traditional IPO process. The point is that your private company reverse merge into public shell that is already registered with Securities and Exchange Commission (SEC) so you don't have to go trough the whole process again. If you are searching for a public company to buy that is where we can help. Mina Mar Group is the largest small cap, micro cap and nano cap retailer of freshly minted public companies that are already quoted or trading on the OTC market. We offer you a vast inventory of pubco vehicles and we offer full range of services. With a large inventory of public companies and with our network of agents across country which enables us to find the right company that matches your criteria. Part of our full services package is providing you with approved ...

Reaching micro-cap investors

The OTC market has significant number of issuers that are start-up, development stage companies that are not adaptable to financial analysis because traditional reports that focus on financial metric are not really valuable. When company is in the stage of development credibility becomes crucial element. In other words, delivering message that clearly indicates market opportunity and capability of company's management to achieve success. Our team at Mina Mar Group can help you design and carry out perfect communication campaign. Essence of our activities is development of an excellent profile of our clients. Report that will be read by investors must be clear, concise and told in compelling way otherwise it will not be read. It is simple as that. Investors need to understand the market sector in which company competes, your business model and plan to attain success on the market. We will work with your company to distinguish key communication points that will convey the r...

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...

How to raise capital with Regulation D?

In the United States under the Securities Act of 1933 any offer to sell securities must be registered with Securities and Exchange Commission (SEC) or meet certain qualifications to exempt them from such registration. Regulation D (Reg D) contains the rules providing exemption from registration requirements allowing smaller companies to offer and sell securities without the having to register them with SEC. Reg D allows companies to obtain funds faster and avoid costs of registration which many small companies could not bear. The SEC earlier placed many restrictions upon private placement transaction. Those restriction referred to type and limited number of investors, solicitation and reselling of securities. Regulation D was adopted in 1982 and has been revised several time since then. It has various rules prescribing qualifications needed to meet exemption from registration requirements, numbered 501 to 508. Rule 501 contains contains definitions that ...

Investor awareness services 2

Corporate Profiling Our corporate profiling will assess your current market position before we develop your new brand. Our corporate profiling strategy will deliver an in-depth blueprint of your company's communications. We will assess your current public image regarding how it appeals to your customers and potential investors in your business area. We will identify all communication factors and expose the hidden or not-so obvious factors that might otherwise go undetected. We will define your needs and priorities, measure the competence of your communications and analyze current overall abilities. Based on these analyses, we will work out a plan for improvement, implementation and brand development.   Brand Name Testing Our brand name testing will give direction and insight, as well as uncover opportunities to boost your competitive position. This step in the growth of your company blends creativity and marketing information to uncover brand positioning opportunities ...

Investor awareness services

An investor awareness campaign by Mina Mar Marketing Group can enhance investor awareness of your company within the global financial community. Our investor relations campaign is broken down into two primary components for maximum impact: Content - company profile and related material The OTC market has a significant number of issuers that are development stage companies that do not lend themselves to financial analysis. Traditional research reports, which focus on financial metrics, become meaningless. Credibility becomes vital, and that means delivering communications that clearly demonstrate the market opportunity and the capabilities of management to achieve success. Our team has decades of experience in marketing and communications and will work with you to develop and execute a successful communications campaign. At the heart of our activities is the development of an excellent profile of our clients. Investors need to understand the market in which a company compet...

Reporting Company can now raise Capital with Reg A+

Expansion of Regulation A+ for SEC Reporting Companies We are pleased to share an exciting development in our ongoing campaign to enhance the capital raising opportunities for Small-Cap companies. Last week, the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) was enacted into law and included key legislation expanding Regulation A+ to SEC reporting companies. Regulation A+ allows small companies to raise up to $50 million online, transparently and directly from the public without the extensive cost burden of a full SEC public offering. However, the SEC initially did not allow SEC reporting companies to raise capital through Regulation A+. The passage of The Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) marks a pivotal milestone for our smaller companies and issuers. Section 508 of the bill incorporates the Improving Access to Capital Act, based in large part upon OTC Markets Group’s 2016 SEC Petition for Rulemaking. The Impro...