| How can a private company obtain the capital funding | | | | this cheaply. |
| they need before IPO? | | | | Think of it like this, a pre listing commitment is like a |
| If you think you cannot get the capital raised | | | | check that you need to find a public company to |
| because you are private, think again: | | | | cash for you. |
| One is what is called a "pass through" facility which is | | | | Here is the mechanics of the solution? |
| the subject of another white paper you can request | | | | - You make an application to a fund for a Pre Listing |
| from me. | | | | Commitment. |
| The other is what we call a "Pre Listing Commitment" | | | | - The fund gives you the terms they would invest in |
| which is a legally binding agreement with the fund to | | | | your company if you were already public. |
| give you the cash you need once you are listed. | | | | - You sign the Pre Listing Term Sheet. |
| What is the benefit of a Pre Listing Commitment? | | | | - Legal counsel makes the subscription agreement. |
| The benefit to you is that this allows you to leverage | | | | - You and the fund sign the formal documents. |
| this into an IPO/RTO or merger with a listed | | | | - You now have a legally binding agreement for the |
| company. | | | | funds you need post listing/merger/rto/ipo. |
| The reason this gives you leverage is that the listed | | | | - You can transfer the terms to a listed company. |
| company you merge with knows that you are | | | | - You find the listed company. |
| bringing both the asset of your company and the | | | | - You a deal with a listed company to merge with |
| money to fulfil your business plan to the deal and you | | | | you. |
| are sure to get the cash you need once the deal is | | | | You are now guaranteed to get the cash for |
| completed. | | | | success. Your potential investors also know that once |
| This also empowers you to raise any bridge financing | | | | you are listed you will be able to provide them with a |
| you may need in the interim because the pre ipo | | | | liquid exit. |
| investors know you will have the money to complete | | | | One very smart thing to do would be to research |
| your business plan. | | | | which listed companies are in your field who have |
| Plus the investors may have incentive because they | | | | excellent liquidity but no cash. |
| may never again be able to invest into your company | | | | |