| The Company's major business objectives are to
provide consulting, liaison, and coordination services to small
to medium size companies, to assist them in becoming publicly-traded
companies. After its clients become publicly traded companies, the
Company also provides continuing consulting services to these clients
to help them satisfy the reporting requirements under the Exchange
Act. As auxiliary services, the Company also provides advisory services
to its clients on general corporate financial matters.
Management also concentrates its efforts on creating and/or acquiring
merger vehicles for the ultimate benefit of its clients.
The Company assists its clients in becoming publicly-traded companies
by a variety of means including, but not limited to, the following
methods:
- Reverse Merger. A Reverse Merger
allows a private company to become a publicly-traded company through
the acquisition of a company whose shares are already traded on
a stock exchange or through NASDAQ. The merger/ acquisition of
the privately held company with the public company is achieved
through the exchange of shares of the privately held company,
for the shares of the publicly owned company.
- Registered Spin-Off. A Registered
Spin-Off is also called a Registered Stock Dividend Distribution.
In a Registered Spin-Off, a privately held company becomes a publicly
traded company by issuing shares of its common stock to an existing
affiliate company which has a base of stockholders. That stock
is then registered with the SEC and distributed to the stockholders
of the existing company. The stock of the once privately held
company is considered a spin-off of the private company's shares.
Once received by the stockholders and with a sponsoring a market
maker, some of these shares begin to be traded, a trading market
develops in the stock of the once private company, and the company
is now considered a public entity.
- Initial Public Offering. Initial
Public Offering ("IPO") refers to the first time a private
company sells stock to the public. An IPO is a type of a primary
offering, which occurs whenever a company sells new stock, and
differs from a secondary offering, which is the public sale of
previously issued securities, usually held by insiders. In an
IPO, a private company has to register its stock with the Securities
and Exchange Commission and with States where trading of its stock
is anticipated before the stock can be sold to the public.
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