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Going Public
I'm not sure if this is the right place to ask this, but I would like to know
if anyone here has experience with taking a corp through the process of going public. I understand that it is a long, costly, and tedious procedure, but I'm wondering if anyone here either has been through it with their company or seen it done through a colleague or friend. My corp and my best friend's corp are looking to launch a national ad campaign, and we were wondering what it would take to raise a sizable amount of capital through the public route. At the moment we are weighing the costs and benefits of raising the funds publically compared to privately, and I would appreciate any input. ![]() |
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You are in luck, I have some knowledge in this field.
Firstly, will you be starting a new public company from scratch? That would be very expensive and costly. The cheapest route would be a reverse merger with an existing shell, costs are around $100k-$300k depending on the structure of the deal and the quality of the company shell. Raising money privately would be an ideal situation if you have the investors. When you are public you are at the mercy of daytraders, shorters, flipflop investors, market makers and general market conditions. BUT, when done correctly, you can probably raise a lot more money in the public markets than privately. Be aware that you gotta have one helluva business plan and tons of potential to get anybody excited about your public co. |
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He mentioned he already has a corp.
Yeah.. if you got a rocky history dont do it. If you got bullish growth, then do it. Otherwise I'd Just go public with a small float of say around 20 million. Wait awhile then dillute to about 50 million and then stay there and do forward splits after that. |
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What secotr? Science, business?
GOing public is very expensive. If the company is very small or still in a prototype stage, file on the pinksheets exchange for under 100K. The OTC exchanges will cost you 500K+, and the nasdaq SC is much more. |
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