Julius Csurgo is managing director of Merger Law
Julius Csurgo is managing director of Merger Law
Julius Csurgo is managing director of Merger Law
Merger Law Are there any requirements to get listed on the Pink Sheets? There are no audits, asset or revenue requirements and no periodic SEC reporting for Pink Sheet listed companies. 16. So are the pink sheets the best alternative for a small company to go public in today's marketplace! We think so. Especially for companies that cannot afford to have their financials audited. Going public this way saves companies 70 to 80% over the cost of doing an IPO or a reverse merger. And it's very fast. Once they're public they can easily trade on the OTCBB later. helps companies go public Who are some of the companies that trade on the Pink Sheets? Some of the best-known companies in the world trade on the US Pink Sheets: Heineken, Nestlé, Nintendo, Rolls Royce, Volkswagen, BAA Plc, BAE Systems, Cathay Pacific Airways, Liberty International, Peugeot, L'Oreal, Marks & Spencer and Neorx Corp are just a few.
Part 2
5. What does it cost to do an IPO? The average IPO costs US$500,000 plus companies usually have to give up 25% or more of their equity.
The new merged entity will then appoint and elect its own management and Board of Directors. By merging into such an entity, a private company becomes public. The cost of purchasing a public shell is from $250,000 and up. A disadvantage of this method is its costliness, hidden liabilities that may be there and not having any prior relationship with any of the shareholders in the "public float". These shareholders could start unloading their stock into the market once they see the stock trading again.
What is the OTCBB? The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ® or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs). Unlike the national security exchanges there are no minimum quantitative standards (assets, revenues, etc.) which must be met by an issuer for its securities to be quoted on the OTCBB. Companies however, must be current in their reports that are required to be filed with the SEC and other regulatory authorities.
Why would I want my company to become a public company? Having a public company and being public has its advantages and disadvantages and is not for everyone. Some of the advantages include access to the public markets to raise funds, liquidity for you and your other shareholders, prestige, using your public stock to make acquisitions and providing an exit strategy to attract investors. For a full list of the many advantages that being a public company has to offer please
I've heard the term IPO. What exactly is an IPO? An initial public offering (IPO) is the first sale of a private company's common shares to public investors. The main purpose of an IPO is to raise capital for the corporation and usually involves the services of an investment banking firm. While IPO's are effective at raising capital, the vast majority of companies will not meet the asset, income, growth, revenue or capital requirement standards that many investment banking firms have. IPO's also impose heavy legal compliance and reporting requirements and are a costly undertaking. Many companies never complete the process. 5. What does it cost to do an IPO? The average IPO costs US$500,000 plus companies usually have to give up 25% or more of their equity.
The new merged entity will then appoint and elect its own management and Board of Directors. By merging into such an entity, a private company becomes public. The cost of purchasing a public shell is from $250,000 and up. A disadvantage of this method is its costliness, hidden liabilities that may be there and not having any prior relationship with any of the shareholders in the "public float". These shareholders could start unloading their stock into the market once they see the stock trading again.
These include: a) Each company must have a minimum of 1.1 million publicly-traded shares upon listing. Shares held by officers, directors or any beneficial owners of more then 10% of the company do not count. b) The minimum bid price of the stock upon listing must be at least $5. c) Companies must also have at least 400 shareholders holding at least 100 shares each. For a list of all of the requirements please visit the NASDAQ website.
What is the OTCBB? The OTC Bulletin Board® (OTCBB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ® or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs). Unlike the national security exchanges there are no minimum quantitative standards (assets, revenues, etc.) which must be met by an issuer for its securities to be quoted on the OTCBB. Companies however, must be current in their reports that are required to be filed with the SEC and other regulatory authorities.
page 2.html Julius What are the Pink Sheets? The Pink Sheets® LLC is the leading provider of pricing and financial information for the over-the-counter (OTC) securities markets. They provide products and services that increase the transparency of information available in the OTC (Over-the-Counter) markets so as to make them more efficient for all participants. Their centralized information network includes services are designed to benefit market makers, issuers, brokers and OTC investors.
julius csurgoPink Sheets information enhances the efficiency of OTC trading, provides better executions for OTC investors and improves the capital formation process for OTC issuers.The origins of the Pink Sheets go back to 1904, when the National Quotation Bureau began as a paper-based, inter-dealer quotation service linking competing market makers in OTC securities across the country. Since that time, the Pink Sheets and the Yellow Sheets have been the central resource for trading information in OTC stocks and bonds. julius csurgo 13. What is the Grey Market? Companies that have a trading symbol and are not quoted on either the OTCBB or the Pink Sheets are sometimes said to be on the "gray market". 14. Are there any requirements to get listed on the OTCBB? There is no minimum level of sales, profits or assets to become public on the
Recent Comments