The Going Public Process

Going Public & the Direct Filing Process

Over the past few years, the direct-filing process has emerged as a legitimate and cost-effective method of "going public" for smaller-cap companies. The direct filing process allows private companies to avoid the substantial costs and cash outlays of the reverse-merger process or the IPO.

Our team of experts guides private companies through the entire turnkey process from start to finish. iValueRich organizes every aspect of going public, including developing the audio and visual presentation, building investor awareness, providing the market maker for the 15c211, the transfer agent, and after-market support to help create a long-term, following of retail and institutional investors. iValueRich managers are former broker-dealers and have a wealth of experience in taking companies public. iValueRich can help your company begin trading on the OTC Bulletin Board, or help you transition to a larger exchange, including NASDAQ or AMEX.

Private companies going public on the OTC Bulletin Board (OTCBB) using the direct filing process must meet the following criteria:

• Two-year operating history
• Two years of audited financial statements (GAAP)
• Minimum of 50 shareholders (We can assist in building the minimum shareholder base.)

 

Private companies should also posssess the following iValueRich.com criteria for listing on the OTCBB, Nasdaq or AMEX:

• Focused and disciplined management team with a proven track record
• A well-defined & substantial market opportunity for its products and/or services
• Revenue-generating and demonstrated ability to achieve sales growth & improve margins
• Profitability or near-term profitability

 

After the company is public trading on the OTCBB, it must meet the following criteria to move to the NASDAQ Capital Markets (CM) exchange:

• Audited financials using U.S. GAAP
• $50 million minimum market capitalization
• $5 million in stockholders' equity or $750,000 of net income from continuing operations

 

Private companies seeking an AMEX listing must meet the following criteria:

• Pre-tax income of $750,000 in the latest year or two of the last three fiscal years
• Shareholders’ equity of $4 million

 

Private companies may also go public on the Over-the-Counter (OTC) securities market as a Pink Sheet stock without GAAP-audited financials if they meet the following criteria:

• Two-year operating history
• A minimum of 50 shareholders
• A minimum of 500,000 shares outstanding in the private company
• Two years of financial statements

 

Private companies should also meet the following iValueRich criteria for listing on the Pink Sheets:

• Focused and disciplined management team with a proven track record
• A well-defined & substantial market opportunity for its products and/or services
• Revenue-generating and demonstrated ability to achieve sales growth & improve margins
• Profitability or near-term profitability