Going Public

Every company at one point has the need to expand. Acer can assist you and allows you obtain the knowledge of raising capital as a public entity. Our staff and strategic partners will analyze what is the most efficient way for your company to hit the public market.  
 
Ways of Taking Your Company Public:

• Traditional Underwriting (Initial Public Offering "IPO") 
  Issuing the company's common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. Typically an IPO, the issuer may obtain the assistance of an underwriting firm, which determines what type of security to issue (common or preferred), best offering price and time to bring it to market.
• Self registration - S1, S2 filings, Form 10 
  This method is the most clean cut way to go public on the OTCBB or Pinksheet Exchange. The typical time frame to complete this process is 4 to 6 months. As we are taking you public through this process we will help you raise capital to secure for the future.
• Reverse Merger (Reverse Take Over "RTO") 
  A reverse merger is a simplified, fast-track method by which a private company can become a public company. A reverse merger occurs when a public company that has no business and usually limited assets acquires a private company with a viable business. The private company "reverse merges" into the already public company, which now becomes an entirely new operating entity and generally changes name to reflect the newly merged company's business. Reverse mergers are also commonly referred to as reverse takeovers, or RTO's.

 Acer assists companies like yours in going public on the OTCBB (Over the Counter Bulletin Board) and the Pink Sheets exchanges. There are no asset or revenue requirements to go public on the OTC Bulletin Board or the Pink Sheets. This opens the doors for start-ups, that way they can go public and start to learn about raising capital. We also help foreign private companies to go public or foreign public companies with dual listings or ADR (American Depositary Receipt).  
 
 
Reason For Going Public:

• Access to Capital 
  Once public a company's ability to raise capital increases dramatically. Allow us to properly introduce your company to potential investors. Some public companies give investors who buy stock directly from them in a private placement a discount from the public trading price. Giving the investor a huge incentive.
• Liquidity  
  Going public allows a company to create a market for its stock. As liquidity increase, normally with help of Investor Relation Services, the company has a greater chance of selling stock to investors. Liquidity provides the investor or company owner a clearly defined exit strategy.
• Mergers and Acquisitions  
  Once public, your stock could be considered as valuable as cash allowing you to acquire other businesses and assets.
• Increased Valuation  
  Market values of a public company are normally substantially higher than a private company with the same structure within the same industry. Statistics published by the U.S. Chamber of Commerce demonstrates that sellers of private companies receive an average of 4 to 6 times their net earnings. Whereas, public companies sell at an average of 20-25 times their net earnings. High tech companies are valued even higher.
• Compensation  
  Public companies use stock and options as an incentive to attract and retain important employees. There are also tax advantages when issuing stock to an employee.
• Prestige of being a Public Company  
  As a public company you will be seen as competitive and stable, allowing you to potentially win more business opportunities and investors. The prestige of a public company gives people on the outside the perception of stability and power.
• Personal Wealth  
  The major benefit of being a public company is the ability for it's founders to create personal wealth. As your stock becomes liquid it offers financial independence, increasing the personal net worth of the shareholders. Employees and officers have two ways to add to their wealth: by receiving a salary and selling stock or trading the stock for another type of asset.
• Estate Planning  
  The public company can be used as part of estate planning for management , allowing the business owner to assets to heirs.
• Publicity  
  Public companies are more likely to receive the attention of newspapers, magazines and periodicals than a private business. The proper use of press releases, interviews and news stories can increase investor awareness, shareholder value demand for public company stock. Publicity alone for a public company can encourage investments from the public, business development and strategic relationships.

Additional Information: 
  - Listing Requirements to take a company public  
 
OTCBB

• There are no financial requirements and there is no minimum bid price requirement.
• Audited Financial's - All domestic public companies must be registered with a Public Company Accounting Oversight Board ("PCAOB"). As specified in Section 102 of the Sarbanes-Oxley Act, it is unlawful for an auditor of a public company to issue an audit opinion if they are not registered with PCAOB. Filings with audit opinions of an unregistered PCAOB auditor are considered to be incomplete and not in compliance.
• Eligibility - The security must eligible for quotation by a market maker on the OTCBB, the security must be registered with the Securities and Exchange Commission ("SEC"). This is done by filing and S-1 or a Form 10, registering sale of stock that has already taken place done in a Private Placement Memorandum ("PPM").

Pinksheets

• There are no financial requirements and there is no minimum bid price requirement.
• The financial statements should be prepared in accordance with U.S. GAAP format or, for foreign issuers, in accordance with their home country's accounting standards.
• ACER COMMUNICATIONS will work with your company and assist you in submitting your current financial information along with the Form 211 to a registered SEC broker-dealer.

 

We will obtain the financing that is pertinent to your businesses growth. We work hand in hand with many investment bankers, venture capitalist, private investors, and hedge funds that are looking to provide the funding for different public and private companies. It does not matter what stage of development your company is in. We are committed to providing you with integrated financial solutions that will help your company meet its goals. Let us help your company raise capital today! 

Need to Raise Capital for any of the following reasons?

• Looking to Go Public
• Entertainment/Movie Financing
• Purchase new Machinery and Equipment
• Company Acquisition(s)
• Land Acquisition and Improvements
• Building Acquisition and/or Construction
• Research and Development
• Marketing
• Hire new employees
• etc.....