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What Is MicroCap Finance?
Describing a
publicly-traded company with a very
low amount of market capitalization.
While there is no specific definition, in
general, micro-cap companies are considered
to be those that have a market
capitalization of less than $250 million.
Some brokerages or exchanges have slightly
different definitions of micro-cap.
Patient, long-term institutional equity
financing is available for United States and
Canadian pubic micro cap companies seeking a
minimum desired funding of USD $500,000.
The company
stock must have free trading shares with at
least nominal daily volume and an
appropriate float.
Suitable candidate companies will have
tenure in their market sector, healthy
market statistics, a strong business model
and a proven management team.
Eligible
companies will show increasing share value,
profitability and revenue growth.
NYEX, AMEX, NASDAQ or OTCBB companies are
eligible. Pink sheet traded equities are not
eligible for this program.
Market sectors with current appeal include
but are not limited to: computer and
software technologies, energy, alternative
energy and transportation, biomedical and
related technologies.
The underwriter reserves the right determine
eligibility. A partial list of basic
guidelines which are offered for information
purposes only are shown below:
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The
company shall be listed, and maintain
eligibility listing upon the NYEX, AMEX,
NASDAQ or OTCBB. Comparable Canadian
stock exchanges are acceptable.
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The
company must have an attractive
business, proprietary technologies and
revenue growth.
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The
investor reserves the right to apply, at
any moment, other investment
restrictions, provided that they are
indispensable to comply at the given
moment with current laws and regulations
in various jurisdictions.
Small
Corporate Offering Registration (SCOR)
can
help to take your small business public.
Small
corporate offering registration allows small
businesses to go public, and allows them to
avoid all of the legal costs and regulations
that larger traded firms endure. Going
public can be an excellent way for a
business to obtain capital if done properly.
A small corporate offering registration is
also referred to as an 'over-the-counter'
sale of securities. This means that the
security is not traded on an exchange.
Instead it is traded directly between
brokers and dealers either online or over
the phone.
Small
corporate offering registration is a
government program that is also referred to
as SCOR. Businesses can actually sell shares
in their company online to large groups of
investors. It can be difficult to get
financed through SCOR, but it is worth
looking into for most businesses. Many of
the state government websites contain
information about SCOR if their state
supports it. One thing to also note is that
you can still sell shares in your company
even if your state doesn't support it yet.
You would just sell your shares to investors
in other states.
Small
businesses can raise up to $1 million
dollars with SCOR. There are some
limitations to which businesses can sell,
but most states provide detailed information
on the program. Other titles for this sort
of financing are 'direct public offering' or
DPO. Since this is a relatively new type of
program it is important to gather as much
information as possible before proceeding.
For more information regarding Corporate
Financing Programs via our support Center
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