Mina Mar Group

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 ...

Many beginners in investing dream about getting rich and becoming a seasoned investors. It is not an easy task but it is not impossible. If you are serious about investing the first thing you need to do is stop dreaming about becoming rich and successful overnight. You probably heard it many times but that's because it true- patience is the key. You will have to learn how to think long term and not make hasty decisions that you will regret later. Another thing that you have to do before you start is to get to know yourself - what is your goal, what motivates you and also very important your fears and limitations. Knowing what you want will help you devise an investing plan and stick to it as well as knowing your limitation. So far it is a good start but it is not enough because you will have to educate yourself continually about investing, but don't let your lack of knowledge hold you back. Stock market is ever changing and learning about it is a lifelong journey so if...

Investing strategy can be understood as set of rules that guide investor in his decisions regarding investment portfolio. Investors use strategies to balance risks and rewards in accordance with his risk tolerance investing goal and investment horizon. Taking time to understand which strategy suits you the best can also help you avoid unwanted expenses. You can look at it as existence of two extremes where on one side are investment strategies that seek rapid growth which includes greater amount or risk and on the other side is low risk strategy with regular dividends payment that is more concentrated on wealth protection. In other words there is always some kind of  trade off between risk and return on investment and most investors are not in the one of those two extremes but somewhere in between. You should honestly assess your current financial situation, your expenses and debt and how much you are able to invest. Investors using value inves...

When trying to learn any skill and reach excellence, mistakes are the natural part of process. There is no way around it, but beginner investor are usually more prone to making these mistakes. Even famous and successful investor have made some of these mistakes at least once. We will look over some of the most common mistakes in hope to raise awareness among future and current investors and help them avoid repeating them. First of all, investing in business and industry that you don't know that well is not a good idea. There is always some "hot" and "up and coming" industry sector but if you don't have much knowledge about that particular industry and don't understand its business model avoid it. For example crypotocurrencies were massive hit, year and a half ago when bitcoin reached its all-time high of $19,500 and then fell to $3,000 a year later. Inexperienced investor could suffer a massive loss if he doesn't fully understand complexity ...

Reverse stock split reduces number of outstanding shares in a predetermined ratio. It is also known as stock consolidation, share rollback or stock merger because two or more shares are merged into one more valuable share.  Reverse split is considered to be a corporate action, meaning action that is affecting share price and needs to be approved by the company's board of directors and possibly by voting shareholders. Company can even get additional letter D to its ticker signifying that it is going through reverse split. Number of total outstanding shares, which includes shares currently held by all shareholders, including institutional investors and restricted shares, is usually divided with 5 or 10 getting ratio one for five or one for ten but it can be as little as one to two or big as one to hundred. For example if you have 100 shares worth $1 each so you have $100 worth of shares. if a company is going for one for then reverse split, you will receive ten shares, each...

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...

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...

Another type of financing beside debt is equity financing. Equity financing means that business raise money through investor by selling the part of the ownership of the company. What motivates investors to get involved is their belief in company's potential and massive return on their investment in the future. It is also called risk capital because return is only possible if the enterprise produces sufficient revenues for that purpose. Equity financing has wide array of capital sources and here are some of them. Private investment from friends and family - you may think this is the easiest way to raise money because you will contact people that you know and it is likely that they want your business to succeed and they require less material preparation. Ownership sharing may or may be not required and many will enter into agreement through the use of promissory note. Usually people don't have large amount of money to invest in business so it is not very usual to secure...

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 ...

Canadian Stock Exchange (CSE) is one of the fastest growing exchanges in the world. It was the first full stock market to be approved by the Ontario Securities Commission  in the past 70 years. CSE is alternative for micro-cap and emerging companies. It gives alternative to entrepreneurs  by making the access to Canadian public capital market easier and more user friendly. The CSE offers simple and precise rule book that makes the process of accessing public market quick and relatively inexpensive. Here are some of the reason why you should list your company on Canadian Stock Exchange. Straightforward requirements  - listing on CSE is streamlined with clear and concise rule book (it is just 56 pages). It helps companies to quickly realize if they can meet requirements and avoid engaging in lengthy process. Rule book is written not only for lawyers and corporate finance people but also for companies and business themselves so they can understan...

Bankruptcy happens when business is unable to pay its debts and creditors. Business can file with federal bankruptcy court  for protection, usually under chapter 7 or chapter 11. In the United States bankruptcy is governed by federal law commonly referred to as the "Bankruptcy Code". Bankruptcy cases are filed in the U.S. Bankruptcy Court and federal law govern procedure in bankruptcy cases but state laws are often applied to determine how bankruptcy affect property rights and debtors. Two major types of bankruptcy are Chapter 7 and Chapter 11. Chapter 7 happens when company ceases all of its operation and goes completely out of business. A trustee is appointed to sell (liquidate) company's assets in order to pay off its debt. Debts are payed off according  to absolute priority. It is rule that secured claims are paid before junior claims are paid. In that order secured creditors are paid first, then bondholders and in the end shareholders. In other words, invest...

There are several potential advantages of going public through reverse takeover transaction. One of the biggest is better access to financing options. Usually private placement is conducted simultaneously with reverse takeover.  It will provide capital for company's future plan and projects and also fund the expenses of RTO. Public company that is reporting issuer has the opportunity to raise additional capital. Secondary offering require prospectus forms that are significantly shorter and are subjected to shorter review period by the Securities Commission in comparison to RTO transaction. Also, public companies are in more favorable position to obtain debt financing. If company complies with periodic reporting requirements it makes it more attractive to lenders and debt investors. Small and growing companies  in Canada also have lower listing requirements and less continuous disclosure obligations (TSXV and CSE). Being public company provides greater liquidity f...

There are different method to take your company public in Canada: initial public offering, reverse takeover, and direct listing. There are several advantages and few disadvantages of reverse takeover (RTO) over initial public offering (IPO).  An IPO requires a preparation, filing and clearance of prospectus which is subject of review and approval by the securities exchange commission. Disclosure document for RTO includes prospectus level disclosure with respect to the private company. In addition disclosure documents relation to RTO transaction will not be subject to review by commission. Private company will undergo due diligence and disclose information which  it has not previously  made public, including three years of audited financials. The private company will also need to conduct due diligence  of the public company to ensure that it is not inheriting any material unknown or unforeseen liabilities and that public company is up to date wi...

Reverse takeover is transaction in which public company listed on a stock exchange in Canada with few or without assets (often referred as shell company) acquires all securities of a private company with a significant assets and operation. It is considered a less expensive and time consuming alternative to initial public offering (IPO). This way public companies acquires all securities of public company and it becomes direct or indirect wholly-owned subsidiary. Shareholders of the private company receive shares from the public company  and the operating company's shareholders ultimately acquire a controlling interest in the new, combined company. Shell companies may be created and maintained just for purpose of reverse takeover or it can be existing company, a  reporting issuer that have previously ceased operations, but still maintain their reporting issuer status and usually have the shareholders required to list on a stock exchange. This makes them ideal candi...

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...

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 ...

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...

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...

Under Securities Act of 1933 any offer to sell securities must be registered with Securities and Exchange Commission (SEC) or meet certain requirements to be exempt from registration. Regulation A+ under Title IV, Section 401 of Jumpstart Our Business Startups Act (JOBS Act) contains rules providing exemptions from the registration requirements. Reg A exemption existed prior to JOBS Act, it principally focused on small companies and had offering limit of $5 million which led to it not being used as much. Additionally issuer registered the offerings in any state in which they planned to sell it. JOBS Act expanded offering limit on $20 million for Tier 1 and $50 million for Tier II offering. With Regulation A companies can raise capital from the public and avoid legal requirements and high costs of traditional IPO. This means it included startup and emerging companies that could bear costs of initial public offering. Tier 2 Offering also called Mini IPO removes individual state ...

An undeniable fact of business life as we enter the 21st century is that market became a highly competitive place with a complex business climate so companies need to do effective and cost efficient job of marketing themselves than ever before. Corporate image describes the manner in which a company, its activities, product and services are persevered by public. In order to stay relevant many businesses actively strive to create and communicate positive corporate image to their customers, shareholder, potential investors and general public.  If you ignore the importance of corporate image in order to avoid associated costs it will end costing you more in the long run. Some of the negative consequences are high employee turnover, lack of or losing important customers or drop in stock value. Contrary to popular belief many of the tools for creating corporate image are time tested and require only a commitment and energy. While expensive advertising campaigns will ...