2820 W. Charleston Blvd., Suite 22
Las Vegas, NV  89102
  Phone   702-677-8211 

FAQ's

Steps to doing a Mini-IPO

Each company's situation is different so there will be some variation in the steps, but this will outline what the basic steps are.

1.  Company evaluated to determine if Mini-IPO is correct method to use and if company is in the correct condition to do one.

2.  If your company is eligible to do a Mini-IPO, the process will be explained to you and fee schedule will be covered.

3.  Company is given a list of items to be completed to prepare for Mini-IPO filing.  This may include bringing financials up to date; preparing, polishing or revising the company's business plan; changes to business structure; etc.  We have many professionals that are expert with all these items so that you can get the help you need on anything that you need assistance with.

4.  When the first 3 steps are fully done, the paperwork is prepared and filed for the Mini-IPO with the correct regulatory body.

5.  Follow-up is done until you are approved for your initial offering.  You may be asked for additional documentation during this period or to make corrections to documentation you had provided.

6.  How stock is distributed in the initial offering of the Mini-IPO is arranged with you following the laws and guidelines governing this.  

7.  Initial offering is handled by us until it is completed and then the appropriate forms are filed to prepare for full trading status.

8.  Forms and documentation are prepared by us and filed with the SEC (Securities and Exchange Commission).

9.  We coordinate with you to provide any additional information or documentation requested by the SEC.

10.  If the SEC acknowledges your registration filing as acceptable, we then coordinate with the market maker who files the necessary paperwork with the NASD to get you listed on the pink sheet or bulletin board market.

11.  Once you've been approved for trading by the NASD, your stock is now trading on the open market.

12.  If you wish, at this point, we can assist with arranging meetings with capital investors to get you the financing you need to accomplish what you set forth in your business plan.

Benefits of a Mini-IPO

  • The cost are significantly less for doing a Mini-IPO.  There are accounting and legal costs for both the Mini-IPO and regular IPO but with the Mini-IPO these costs are usually quite a bit less.  In addition, the underwriting costs for doing a Mini-IPO usually run 15-25% of what a regular IPO's underwriting expenses can be.

  • The time to complete a Mini-IPO is usually much less than for doing a regular IPO.  A regular IPO may take over a year to complete while a Mini-IPO can often be completed within 4-6 months.

  • You will have more control of your company with a Mini-IPO.  When you move from being a private corporation to a public corporation the ownership will become diluted, which means the ownership is spread out more amongst more people.  This 'dilutes' both the total amount of the value of stock you own as well as your voting rights on corporate matters.  The dilution with a regular IPO can be 5-10 times that of a Mini-IPO due to both the way the offering is structured and the percentage of shares to the underwriters for their service.  So in a Mini-IPO, you can retain a higher percentage of shares and control.

  • Requirements for filing a Mini-IPO are signficantly less than for a regular IPO.  To do a regular IPO, you would normally need to be a well-established company with a strong growth in sales and income.  But doing a Mini-IPO does not have requirements on past performance.  So if you want to go public for estate planning, providing liquidity to its owners or investors or to reward or retain employees, the Mini-IPO provides a method that both large, established companies and smaller, newer companies can use.

  • A publicly traded company can get funding from investors more easily than a private company.  Once a company is publicly traded it can seek out private funding, something that Devon Financial Group also assists with, and is more likely to interest investors who look for opportunities with more security.   The Mini-IPO gives companies the ability to seek private funding as a public company in cases where the company wouldn't qualify to do a regular IPO or where the time and/or expense would be prohibitive.

  • Reporting requirements may be less.  In a Mini-IPO your stock will trade either on the Pink Sheets or Bulletin Boards rather than on the major exchanges, although over time your company move grow to an extent where you can move up to the major exchanges.  But if you start out trading on the Pink Sheets, you will not be required to file quarterly and annual reports with the SEC and so your costs for accounting will be less and you will avoid the costs involved with having the quarterly and annual reports prepared.

If you have any more questions about the Mini-IPO process or benefits, you can either read through our Frequently Asked Questions page or Contact Us.