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Caution: You're about to enter an Affordable Housing Zone
Affordable housing programs are inherently unfair, hurt property owners, rely upon an unfounded evaluation of the home ownership situation, and erroneously see the solution to the housing "crisis" as the weaving of a paternalistic safety...
Criminal Background Checks
As an employer, it is understandable that you want to know as much as possible about a prospective employee. A combination of employment application, personal references and background investigations can give you a sense of peace when entrusting an...
Fake IRS Demand to Fax Personal Data Using Phony Form
A new identity theft scam uses fake IRS correspondence and a doctored IRS form to con personal and financial information out of non-resident aliens with U.S.-based income. The fraudulently obtained information is then used to steal the...
Hawala, or the Bank that Never Was
In the wake of the September 11 terrorist attacks on the USA, attention was drawn to the age-old, secretive, and globe-spanning banking system developed in Asia and known as "Hawala" (to change, in Arabic).
I. OVERVIEW
In the wake...
How To Avoid Online Scams
According to an FBI report from 2003 to 2004 online scams doubled with nearly ten million new victims. This crime cost those victims nearly $5 billion of money they could not afford to lose.
Sadly, people are continuing to fall for online...
Identity Theft. You are not Immune.
As identity theft becomes more prevalent, the need to regularly check your credit report is very easy to see and understand. Two big headlines in the news recently point to how closely tied your credit report and identity theft are. First, we hear...
Offshore investing - Leveraging overseas trading
In today’s climate of a falling dollar and emerging economies all over the world, offshore investing can be an attractive option. Before looking at investing overseas, however, you should understand your financial goals, the potential pitfalls of...
...open door to your home wireless?
This is not some new fangled techno-speak, it is a real tool to be used for the protection of your wireless internet network and LAN. African American SMBs have to realize that if your Internet connection is on 24/7 then your network, and it is a...
Real Estate on the Internet: Searching and Researching
According to the National
Association of Realtors (NAR) 80% of people interested in
purchasing real estate use the Web in their search. If you are
looking for homes for sale it can be a very daunting task. The
Internet is a very powerful...
Various Online Scams - You have one defense - Yourself
I am writing this article to join in the war against online
crimes. There are many of them, but all have one thing in common
- to take your money.
Let's see, there is the 419Scam named after the Nigerian law
outlawing it. There is the...
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Going public: The process for small and mid-size companies to go public.
Going public: The process for small and mid
Size companies to go public.
It’s the dream of every person who starts a business to some day see it trading in one of the stock exchanges even after they are no longer associated with the company. The first step (#1) is simple since most small company are already incorporated and have a board of directors, so we will start with #2.
Step. #2. Engage a consultant but not before doing a background check. This is a must because the consultant who is supposed to be working for you may be the very person to destroy your dream.
Simply type the consultants name in Google and if nothing comes up, try the brokerage firm they were last associated with, to find out if they have been disciplined, or convicted of some crime by the Securities and Exchange Commission or some other regulatory body.
Many individuals when barred from participating in any securities transaction or from acting as consultants still do so in a stealth manner. Hoping that you will be impressed with their sales pitch and not bother looking into their background.
The reason most consultants do not have websites is because they do not want the regulators to find out that they are involved in stock market related activities.
Step. #3. If you are not using a securities attorney, ask the consultant to recommend a good one, he will probably know several. A good attorney is critical since you want him to know the process and has done this many times before.
Step. # 4. Have an audit done, this a requirement and must be
done prior to any filing with the Securities and Exchange
Commission. The CEO needs to take an active part in the auditing process since under the new corporate governance
laws the he must affirmed the final audited financials as being
accurate.
Step. #5. The officers and directors of the company must decide what method they are going to use to achieve their goal of becoming a public company. This can be accomplish through
a reverse merger and by doing a Regulation D (504) offering.
A reverse merger is accomplished by the
purchase of, and reverse merger into an existing public shell company.
This is inexpensive compared with the conventional initial public offering (IPO), this is also a simplified fast track method by which a private company can become a public company.
For more information on reverse mergers visit: www.genesiscorporateadvisors.com or read my article on www.ezine@articles.com under small business.
Regulation D (504) offering: Under the Securities Act of 1933
any offer to sell securities must either be registered with the SEC or meet an exemption. Regulation D provides three exemptions from the registration requirements, allowing smaller companies to offer and sell their securities without having to register the securities with the SEC.
While companies using a Regulation D exemption do not have to
register their securities and usually do not have to file reports with the
SEC, they must file what is known as a “Form D” after they first sell their securities.
This offering is not exempt from State securities filing requirements.
With an regulation D (504) offering you are permitted to raise up to a
million dollars within a year but there is no minimum amount and in order to go public you must sell to minimum of 35-40 investors at least a round lot (100 shares) each.
This offering is not exempt from the securities Act of 1933 anti fraud provision. (No securities are exempt from this provision).
Step # 6. Have a broker dealer file a form 15c211. Again your consultant will introduce you to a broker who will file the 15c211and be a market maker in the securities of the company.
For more information visit: www.genesiscorporateadvisors.com
Joseph D. Quinones
josephquinones@genesiscorporateadvisors.com
About the Author
Joseph D. Quinones, President of Genesis Corporate Advisors has spent over 25 years in the securities industry. In 1992 he founded JDQ Financial Group, Inc. and proceeded to build it up from a one man operation to the point where it employed many traders, advised numerous client and generate millions in revenues.
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