What is a Direct Public Offering?

A Direct Public Offering (“DPO”) is an initial public offering which is completed by a private company to become publicly traded. The process does not require the services of an investment banking firm and it does not require buying a public shell to merge into. In a direct public offering transaction, a private company goes public utilizing the same rules and regulations utilized by large companies who complete an initial public offering.

What are the advantages of a Direct Public Offering?

There are many advantages of a DPO, including but not limited to:

• The entire process to become public is controlled by the private company and its advisers;
• Because there is no investment banking firm, the process to go public is not subject to market conditions;
• There is no need to attract the interest of an investment banking firm;
• There is no need to identify, evaluate, purchase or use a shell company;
• Because there is no need for a shell company, there are no contingent liabilities or unknown risks;
• A direct public offering costs much less than a traditional initial public offering and much less than a typical reverse merger;
• Any legitimate operating business can become publicly traded through a direct public offering.

What are the disadvantages of a Direct Public Offering?

There are several disadvantages of a DPO, including but not limited to:

• Officers and directors of the company are responsible for raising investment capital;
• It takes between eight and ten months to complete the direct public offering process.

What are the costs of a Direct Public Offering?

A direct public offering can be completed for as low as $40,000 plus stock/warrant. There are four general costs:

• Accounting/audit fees
• Legal fees
• Professional adviser fees
• Miscellaneous

Accounting fees, legal fees and professional adviser fees are largely dependent on the size and complexity of each transaction. Contact us for a quote.

How can we help you with a Direct Public Offering?

We assist private companies through the planning, implementation and management of the direct public offering transaction. We coordinate every part of the process. Our team has more than 50 years of experience in finance, operations, sales, marketing and business development. We have been involved in more than 40 direct public offerings, initial public offerings and reverse mergers. If you are looking to go public, our team can deliver results. Total costs can be as low as $40,000 plus stock and a warrant.

For more information or a detailed proposal to take your company public, please call 516-509-8132 or email us.