| As a global corporate strategies firm we are | | | | go public in the United States, you need to have an |
| beginning to get many inquiries from foreign | | | | American corporation. This doesn't necessarily mean |
| corporations that wish to take advantage of the | | | | that it has to become your primary corporation. You |
| rapid growth capabilities of trading stock in the US. | | | | can use one corporation as your operational entity |
| Getting set up with a consulting firm that specializes | | | | and one as a subsidiary but to strengthen and |
| in fund raising mechanisms such as private placement | | | | stabilize your share price you'll need to eventually |
| memorandum, direct public offering and/or taking | | | | show growth and assets in your US entity. |
| one's company public on the OTCBB can help a | | | | How much equity should I give up to the public? This |
| foreign entity obtain virtually instant gratification of | | | | is a decision that will be made with your attorney and |
| raising large amounts of capital in an expedient | | | | Board of Directors and the decision is based off of |
| manner. | | | | your company's industry position, the value of |
| Chinese companies typically have similar questions and | | | | empirical assets like equipment, contracts, patents, |
| concerns when they contact us such as: How long | | | | current foreign based share holders etc. |
| does it take to go public? What are my options for | | | | Can I merge my Chinese company with my American |
| raising capital with a US structure? Do I need to have | | | | company to strengthen the American corporation's |
| an American corporation? How much equity should I | | | | asset value? Yes absolutely. This is the most popular |
| give up to the public? Can I merge my Chinese | | | | technique to show current and future shareholders |
| company with my American company to strengthen | | | | that your company will be a long term public player. |
| the American corporation's asset value? And How do | | | | The more asset 'skin' you are able to put in the |
| we sell the stock to the public once we have a | | | | game in the beginning the better for the longevity of |
| symbol and are ready to trade? | | | | your enterprise. |
| How long does it take to go public? To go public on | | | | How do we sell the stock to the public once we |
| the OTCBB you need to have a solid business plan | | | | have a symbol and are ready to trade? During your |
| and corporate structure, usually a pre-public round is | | | | 'going public' process you'll be attached to a market |
| done with a Private Placement Memorandum to offer | | | | maker. The market maker, your consultant and your |
| discounted stock in return for equity seed capital that | | | | publicist (if you don't have one your consultant will |
| will fund the 'go public process'. This process can take | | | | find one for you) will work together at all fronts to |
| a few weeks to a few months, it all depends on the | | | | help you leverage your new public entity. Your |
| deal and what you're offering the investors at this | | | | publicist will have authors in newspapers and |
| stage. Next you'll want to do your third-party audit | | | | magazines do write-ups on your company as they |
| and your S1, after your audit is done and your S1 is | | | | help you label yourself globally as a new industry |
| filed you'll enter into the 'comments' stage where the | | | | powerhouse, each of your executive team members |
| SEC is going back and forth with you or your lawyer | | | | will also have their own publicity strategies going as |
| or your consultant (whoever is helping you go public). | | | | well so that your publicist can place them on expert |
| The comments stage can be anywhere from a | | | | TV and radio panels as industry experts which brings |
| couple weeks to a few months, the more | | | | website visitation, new distribution opportunities, |
| unorganized the company, the longer the audit and | | | | personal and corporate branding and investor |
| comments stage will take to complete. The average | | | | confidence which is all conducive to an increase in |
| for an organized company with the audit and S1 prep | | | | your share price. All of this will bring call volume into |
| done simultaneously is around 4 to 6+ months (the | | | | your market maker while they are selling your stock |
| more unorganized the company the longer it takes). | | | | to new contacts as well as calling on their established |
| What are my options for raising capital with a US | | | | database of investors. The process is typically |
| structure? Raising capital in the US happens quicker | | | | audited quarterly by your consultant to find dead |
| than in other countries because of the vast wealth in | | | | weight or weaknesses and tighten everything up. |
| North America and its position in the global market | | | | Using the public fundraising strategies based in the US |
| place. Invest-able deals are all in the eye of the | | | | is a wise decision to grow your business. Finding the |
| investor. The challenge is getting in front of investors | | | | right consultant is crucial. The right consultant can |
| with a track record of investing in your particular | | | | make or break your efforts to go public in the United |
| industry genre. | | | | States. |
| Do I need to have an American corporation? Yes, to | | | | |