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Investor Relations Taking your company public is a significant exercise in terms of management time as well as a large upfront expense and significant ongoing expenses. Companies go public in order to: • Secure external financing; • Create an exit for investors and management; • Establish greater credibility with suppliers and customers; • Attract senior staff with options. Once the company has decided to proceed, the company then has to undertake a thorough review and then: • Determine if the current board of directors and management team meet the regulatory requirements of a public company; • Determine if the company’s last five years of financial statements meet the regulatory standards; • Determine its professional advisors and select an agent/sponsor (underwriter/investment dealer); • Select a securities lawyer, an external auditor (preferably from the “big five”), and an investor relations professional; • Ensure that adequate investor relations programs are in place; • Determine which is the right market for your company’s shares and then determine a listing vehicle – an Initial Public Offering (IPO), a Reverse Take-Over (RTP) or a Capital Pool Company (CPC); • Organize your internal documentation to ensure that the prospectus and due diligence are complete in a cost effective manner. Once all of the above have been attended to, the company then has to prepare The Listing Application and Preliminary Prospectus. These are large complex documents that securities lawyers generally need to prepare and review. The better prepared and organized the company is, the less expensive that process will be. |
Based on our experience we can assist in assessing whether going public is the right thing for your company, the proper exchange to list on, and then we can assist in reducing your overall costs and improve your chances for a successful public launch. |
Going Public & Financing IT Infrastructure |