Monday, February 15, 2010

Time That It Takes To Get Listed On The OTCBB Exchange?

We get asked by private companies how long it will take them to get listed on the OTCBB Exchange every day. The answer is we do not know and no one else knows either. The average time range is between four and six months. We have listed companies in as little as three months but that rarely happens. In our approx. 15 years of listing private companies on the OTCBB Exchange we have never been able to predict the length of time that it will take a company to get listed.

We have seen start-up companies get listed in three months and start-up companies take six months to get listed and the same goes for companies that have been in business for years with revenues and profits. There is no exact formula as each filing can and will be reviewed differently by both the SEC and FINRA.

Over the years Bridge Capital has streamlined the listing process to ensure that our clients get trading as fast as possible. Bridge Capital is always up to date on the newest rules and regulations and models all of their clients filings based on the quickest methods.

Bridge Capital Inc.

Can I Use The Money Raised To Pay For The Process Of Going Public?

Many people ask us if they can use all or a portion of the funds that they raise in their initial share offering to pay for the process of taking their company public on the OTCBB Exchange. The short answer is yes. You can use all or a portion of the funds to pay for the process. As long as a company states in their offering memorandum that the company intends to use some or all of the money that they raise it is absolutely allowed. Many of our clients opt to use money raised from investor's to pay to get their company listed.

Bridge Capital inc.

Tuesday, December 8, 2009

Using a Blank Check Reporting Company

There is still some debate as to the pros and cons of using a "blank check reporting company" to go public on the OTCBB Exchange. Blank check companies that already report to the SEC give credibility to small companies trying to raise capital as investor's have access to complete transparency by viewing the company's filings with the SEC. If a private company does not need to raise capital immediately prior to going through the "going public" filing process a blank check company may be a waste of money as the company will have to file a registration statement regardless if they merge with a reporting company or not. A company must have a minimum of 35 non-affiliated shareholders that have freely tradeable shares in order to obtain a listing on the OTCBB Exchange.

In order for a company to have shareholders with freely tradeable shares they must sell shares in a share offering and then registrar the shares that they have sold. Sometimes companies registrar shares for re-sale prior to seeking out investor's. This method usually just delays the process of going public as a company cannot file a "15C211" filing with FINRA to obtain a trading symbol unless their shareholder base is in place.

Friday, November 20, 2009

Annual SEC Small Business Conference 2009

At the annual SEC small business conference that was held in Washington on November 19, 2009. SEC Chair Mary Schapiro noted she is the daughter of a small business operator and that "small business has to be at the forefront of recovery." The panels at the conference talked quite a bit about the current financing market for smaller companies and the regulatory environment. A lot of time was spent on discussing the importance of venture capital for small business.

Wednesday, November 4, 2009

Reverse Mergers for Chinese companies

Many successful, growing Chinese companies are looking to do a reverse merger with US based companies that trade on the OTCBB Exchange to access capital and obtain liquidity as a US trading company. Many US based companies that focus on reverse mergers are making regular trips to China or have already set up an office there. We now receive as many calls regarding Chinese companies wanting to go public on the OTCBB as we do US companies. We believe that this trend will only continue as China continues it's fast paced growth.

"Increase your financing prospects today by going public"