A Low Cost Alternative to Taking Your Company Public in the States

June 22, 2005 (PRLEAP.COM) Business News
Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] suggests a low cost strategy for taking a company public in the United States. This strategy works best for non-American companies.

The traditional approach to going public in the United States costs between US$1,500,000 and US$2,223,000. It takes an average 18 months to get an "Effective Letter." The odds of seeing your company's shares trade are about even, i.e., 50/50.

The popular alternative to the traditional approach is the Reverse Merger. While the initial costs are low and the odds of trading are high, the costs over time greatly exceed US$5,000,000. The Reverse Merger Company must pay the costs of buying the former insiders shares and then pay every quarter to find investors to buy those shares. The result is a costly drain on the resources of the Reverse Merger Company that usually leads to its failure.

Mr. Cate, Managing Director of Beowulf Investments, has a quarter century of experience in the Market. He's well published on the subject [http://www.GoArticles.com] He's lectured from the University of British Columbia to the National University of Singapore. The Financial Press regularly quotes him on topics related to the Market.