| There are many ways to go public in the US and | | | | powerful by increasing your ability to attract |
| there are many different listings and quotations. | | | | "mergers", "acquisitions" and "strategic partners; |
| The three major levels of listing are: | | | | 6)Grow your company faster and make it more |
| THE OTC PINK SHEETS: Often referred to as | | | | powerful by increasing its ability to compete for large |
| "pinks", These companies are listed by the National | | | | corporate contracts; |
| Quotation Bureau (NQB). As of today, neither the | | | | 7)Leverage your personal return on investment as an |
| NASD nor the SEC require Pink Sheet companies to | | | | owner by decreasing the amount of time it will take |
| maintain current reporting status nor undertake costly | | | | you to make money on your investment, as well as |
| annual audits. However, this is soon changing. (Note, | | | | increasing the valuation of your company, as well as, |
| however, this is currently changing. Please see ) | | | | changing the liquidity of your asset to a much more |
| THE OTC BB: The OTC Bulletin Board is operated by | | | | liquid form than that of a private company; |
| the National Association of Securities Dealers (NASD) | | | | 8)Grow your business faster and make it more |
| and requires that all companies whose stock is traded | | | | powerful by increasing your status in the eyes of all |
| on the OTC Bulletin Board (or Nasdaq or Amex) | | | | those you do business with. |
| maintain their current reporting status with the | | | | For a foreign corporation a qutation on the US stock |
| Securities and Exchange Commission (SEC), which | | | | markets is a way to: |
| includes current audited financial statements. | | | | 1)Increase liquidity for the owners of the corporation |
| EXCHANGES: While the OTC PINK SHEETS and the | | | | by tapping into a liquid US market; |
| OTC Bulletin Board are excellent stock markets, | | | | 2)Tap into the US capital market (the largest in the |
| some clients are interested in trading on one of the | | | | world) for expansion of business at home and |
| more mature U.S. stock markets - Nasdaq Small-Cap, | | | | internationally; |
| Nasdaq NMS, NYSE or AMEX. There are varying | | | | 3)Hedge against foreign currency - by diversifying |
| levels of qualification for each exchange including | | | | your holdings into US dollars it is a way to hedge |
| asset levels, number of shareholders, required Board | | | | against the foreign markets volatility; |
| level committees, and market capitalization. All | | | | 4)Tap into the huge leverage possible on the US |
| exchanges require the company to maintain a current | | | | stock market as detailed in leverage point above. |
| reporting status with the Securities and Exchange | | | | Often time foreign laws and exchanges do not |
| Commission (SEC), which includes current audited | | | | permit the owners the huge leverage available on the |
| financial statements Typically, a company wishing to | | | | US stock markets. For example, being able to raise |
| trade on one of these exchanges will need a | | | | 100million dollars and keeping 70-80% control of the |
| minimum of $20 - 100 million in annual revenue and | | | | US corporation is not something you can do on all |
| net profits of at least $2 million annually. | | | | foreign exchanges;) |
| For a US company a quotation on the US stock | | | | 5)Expand your business into the US and tap into |
| markets is a way to: | | | | strategic alliances-- US companies are more likely to |
| 1)Leverage a larger retention of ownership; | | | | do business (and do business on more favorable |
| 2)Grow your company faster and make it more | | | | terms) with a US public corporation than a foreign |
| powerful by attracting top personnel without | | | | corporation; |
| necessarily huge cash outlays; | | | | 6)Tap into US and International personnel pools. Key |
| 3)Grow your company faster and make it more | | | | US and INTERNATIONAL personnel are more |
| powerful by attracting top notch team members to | | | | available to a US public corporation; |
| your board of directors; | | | | 7)Tap into the international MERGER and |
| 4)Raise money faster and cheaper by increasing the | | | | ACQUISITION market. US and INTERNATIONAL |
| "liquidity" factor for your investors; | | | | businesses are more likely to become an acquisition |
| 5)Grow your company faster and make it more | | | | or merger candidate for a US public corporation. |