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While there are several potential routes when taking a company public and becoming quoted on the OTC, at V Financial Group we focus on key methods through which you can achieve your goal

  1. A Minimum of 35+ shareholders will be needed.

  2. Audited financials of the operating Company will be necessary.

  3. The general process to achieve OTC status (unless through reverse merger with a trading shell company) is a process that takes a minimum of 4-6 months to achieve.

When taking a company public, the fees to become an OTC quoted Company can vary quite a bit depending upon your desired time frame and budget.

The most traditional way to go public, without reverse merging into an existing trading blank check shell company, is to file an S-1 Registration Statement or conduct a Regulation A+ Offering. These are Registration Statements filed with the SEC which register the restricted securities (stock) of your operating company that your current investors have, or that the Company will offer for sale, and subsequently grants your company status as an SEC Reporting Company.

Upon effectiveness of the S-1 or qualification of the Regulation A+ Offering, which generally takes between 4-6 months because the SEC responds to each submission with comments that must then be addressed, a market maker will then be able to file what is called Form 211, and also apply for DTC eligibility. It should be noted that in order to proceed with the Form 211 process, the Company first has to maintain at least 35+ shareholders holding free trading stock.

If timeline is of greater concern than keeping costs as low as possible, then a private operating company may consider purchasing, and/or reverse merging with, an existing trading OTC blank check shell company. When taking a company public, this dramatically reduces the timeline to become trading, however, the expense is greater than the traditional route. The cost to gain control of such a company would likely require a large capital expenditure, and/or may result in the need to compensate existing owners of the Company in the form of equity.

The operating company seeking to merge with the blank check company would be required to obtain PCAOB Audited financials for the merger to be consummated. However, control of the Company could be shifted to a new control group in a greatly reduced time frame depending upon due diligence and the alleviation of similar logistical considerations.

What Our
Clients Say
About Us:

Most Edgar Service Providers focus on one aspect, but V Financial Group stood out for their end-to-end support. They seamlessly collaborated with my auditor, made revisions promptly, and delivered error-free filings, freeing me to focus on my business.

Daniel
Daniel

After investing significant resources elsewhere without achieving desired outcomes, I turned to V Financial Group with the objective of conducting a reverse merger between my operational business and an OTC entity. Their expertise and tailored approach addressed the shortcomings encountered elsewhere, enabling me to fulfill all my objectives.

Jiang
Jiang

I sought assistance in filing a Registration Statement to secure capital for my business, unsure of where to begin. After consulting with multiple sources, it became evident that few offered comprehensive solutions. V Financial Group guided me towards the most suitable approach, streamlining the process.

Charlotte
Charlotte

Finding reliable assistance for EDGAR services was a real challenge until I discovered V Financial Group. After several disappointing experiences, their professionalism was a breath of fresh air. Not only did they consistently deliver tasks on time, but they also maintained a high level of professionalism and offered fair pricing. I couldn't be happier with their services.

Mae
Mae