Direct Filing
Over the past few years, the direct-filing process has emerged as a legitimate and cost-effective method of “going public” for smaller-cap companies. The direct filing process allows private companies to avoid the substantial costs and cash outlays of an IPO.
Our partner The Beausett Group guides private companies through the entire turnkey process from start to finish. AMBGROUP FZ Firm organizes every aspect of going public, including providing the market maker for the 15c211, the transfer agent, and the often neglected but critical after-market support to help create a long-term, loyal following of retail and institutional investors once the company is public. AMBGROUP FZ also assists the company in moving to the NASDAQ or AMEX.
Private companies going public on the OTC Bulletin Board using the direct filing process must meet the following criteria:
- Two-year operating history
- Two years of audited financial statements (GAAP)
- Minimum of 50 shareholders (We can assist in building the minimum shareholder base.)
Private companies must also meet the basic AMBGROUP FZ criteria:
- Focused and disciplined management team with a proven track record
- A large market opportunity for the product(s) or service(s)
- Concrete evidence of growing sales and improving margins
- Profitability or near-term profitability
After the company is public trading on the OTC Bulletin Board, it must meet the following criteria to move to the NASDAQ Capital Markets (CM) exchange:
- Audited financials using U.S. GAAP
- $50 million minimum market capitalization
- $5 million in stockholders’ equity or $750,000 of net income from continuing operations
Private companies seeking an AMEX listing must meet the following criteria:
- Pre-tax income of $750,000 in the latest year or two of the last three fiscal years
- Shareholders’ equity of $4 million
