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