InvestorsHub Logo
Followers 4
Posts 8
Boards Moderated 0
Alias Born 03/20/2014

Re: None

Tuesday, 04/29/2014 10:32:30 PM

Tuesday, April 29, 2014 10:32:30 PM

Post# of 116
Does anyone hear know the process for raising capital through an OTC/Pink stock. I have read all of the information on the 'Research' tab located on the OTC website but information relating to how the raising of funds is not on there.

Questions:
1.When a company wishes to join the OTC market how does the initial public offering work? Does the company sell a certain amount of shares at a price to a transfer agent? Does the Transfer agent determine the price to shares ratio (For example sell 100 shares at $1 or 1000 shares at .10c) I know there are not underwriters etc with OTC stocks. If this is the case then how does the second transfer agent obtain shares since it may be necessary in order to create a market.

2. How are additional shares issued (i.e additional funds raised)? Does the CEO simply call the transfer agent and tell them how many shares to sell?

Any information you have would be greatly appreciated but please only people who are knowledgable in the area please respond.

Thanks

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.