SCOR FAQ. Part 5
Description
This article is from the Investing Articles: Public Offerings: IPO and DPO series.
SCOR FAQ. Part 5
15. Can the company fund its SCOR offering through bridge
financing?
The offering can be funded by such methods as an SBA "LOW
DOC" loan or raising the money by a "quick-fix"
subscription offering or other alternatives. It is possible, depending
upon the company, to complete a SCOR Offering with an initial
investment of $5,000 on the part of the company. This is achieved by
undertaking a "quick fix" bridge equity offering followed by
a SCOR Offering. DFS can advise and assist on this topic.
16. What is the cost to the company if the offering is not a
success?
The company must pay the professional registration fees, outside
counsel, outside independent
auditor, escrow fees, state filing fees, advertising &
marketing fees, printing and postage. Selling
commissions are paid only on moneys received by the company, No
success, No fee.
17. How much does the company receive?
Net of all expenses, the company will receive on average a net of
$800,000+/- if the offering is sold
out at $1 million.
18. How are states chosen in which to register?
At DFS , before recommending the states for registration, we take into account the following: prospect base residency, proximity, advertising restrictions, escrow rules, filing, registration, merit review approvals, and "substantive fairness" attitudes of each state's administrator.
19. Is there any difference between existing stock and SCOR
stock?
Usually. Existing stock is usually deemed "promoters stock
or cheap stock" and there are
restrictions on stock splits, dividends, and resale of the stock.
The State or States in which the
offering is registered generally requires that the promoters
stock be escrowed for a period of three
to eight years. The rules are different if the company is quoted
on the SCOR Market Place of the
Pacific Stock Exchange.
20. How do you go about a SCOR LPO offering?
There are 3 MAJOR phases to a SCOR offering: IBC Inc can directly
and indirectly
handle all three phases for the Issuer.
i. Evaluating and preparing the company for an offering by
reviewing all corporate documents,
restructuring the capital structure, and analyzing the
appropriate states in which to file. Preparing
the U-7, U-1, U-2, and U-2a documents, securing the required
audit and documents from your
corporate attorney and CPA, negotiating merit review substantive
fairness issues with the state or
states selected for the offering, structuring escrow arrangements
and receiving the permit to sell.
ii Promoting and advertising the offering to a suitable prospect base, there by generating sufficient investor inquiries to break escrow and eventually close out the offering. Designing, Printing and Distributing the Offering Documents.
iii. retailing the investment to a suitable prospect base, and
most importantly closing the sale of the
stock to investors through a Broker - Dealer Firm and / or the
issuer's appointed and qualified
management.
A successful closing of the offering is best achieved through
utilizing a variety avenues.
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