Alternative ways for companies to go public

[Kristijntje]

A company's current status will determine which course of action to take when it comes to going public. I suggest an S-1 registration statement over a reverse merger when the company is a startup. or still in the developmental stage process (non-revenue-producing). The reasons are as follows:

  1. Most startups need to conserve their finances for developing their company.
  2. The price differential between an S-1 and a reverse merger are substantial. An S-1 will cost under $200,000; a reverse merger, $700,000 to $1 million.
  3. It is difficult to raise capital for a startup. By taking the S-1 route, a company can raise an initial small round of funding and gather the 30-plus shareholders it will need to qualify for trading status when it files its 15c2-11 with FINRA (Financial Industry Regulatory Authority). After the company is public, it can later seek a more substantial second round of funding...

full article: http://ecommercetimes.com/story/Going-Pu...63251.html