Most Canadian, U.S. and foreign based business operations will qualify for publicly traded status. The requirements to list on alternative stock exchanges are minimal and most companies will meet the qualifications for listing. For those companies that don’t meet the minimal requirements for qualification still have the option of becoming a publicly listed company via reverse merger or reverse takeover (RTO) (link to reverse merger info) transaction.
What are the Public Offering Options?
Initial Public Offering (IPO) is the first sale of a private company’s common shares to public investors. The main purpose of an IPO is to raise capital for the corporation and usually involves the services of an investment banking firm. While IPO’s are effective at raising capital, the vast majority of companies will not meet the asset, income, growth, revenue or capital requirement standards that many investment banking firms have. IPO’s also impose heavy legal compliance and reporting requirements and are a costly undertaking. Many companies never complete the process.
Direct Public Offering (DPO) - The direct public offering (DPO) is exactly the same as an IPO and is the least expensive way to go public. The advantage is that that there is no investment banking firm involved in the process and any legitimate company can go public this way. It’s not only fast but it also allows the owners to retain the maximum percentage of ownership and there are no asset, income, growth, revenue or capital requirement requirements.