Direct Public Offerings
Federal securities law provides a means for small businesses to sell stock through direct public offerings (DPOs). A DPO is a financial tool that enables a company to issue stock directly to investors—without using a broker or underwriter as an intermediary—and avoid many of the costs associated with "going public" through an initial public offering (IPO).
Companies choosing this form to raise capital are immune from many of the registration and reporting requirements of the Securities and Exchange Commission (SEC).
DPO, private placements of stock, provide small businesses with a quick (45-60 days), less expensive way to raise capital than the traditional methods of obtaining financing which involves borrowing that then has a monthly debt service attached to it. And, of course, the interest rate on business financing varies substantially depending on how desperately that capital is needed.
The primary advantage of a DPO is a dramatic reduction in cost, as opposed to other alternative financing methods. DPOs can also be completed within a very short time frame and WITHOUT extensive disclosure of confidential information.
In fact, the credit score(s) and financial history of the company principal(s) are not even part of the information required, as they have ABSOLUTELY NO RELEVANCE OR BEARING, in establishng and successfully acquiring capital through a DPO.
Contact us to, more intelligently, discuss your capitalization needs.
Respectfully,
Dr. Francis John Maguire, Ph.D.
MaguirePhD@comcast.net
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