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Alias Born 01/09/2007

Re: The Real Deal post# 24370

Sunday, 01/21/2007 12:14:27 PM

Sunday, January 21, 2007 12:14:27 PM

Post# of 162847
"Future financing
The greater number of financing options available to publicly held companies is a primary reason to undergo a reverse takeover. These financing options include:

The issuance of additional stock in a secondary offering
An exercise of warrants, where stockholders have the right to purchase additional shares in a company at predetermined prices. When many shareholders with warrants exercise their option to purchase additional shares, the company receives an infusion of capital.
Other investors are more likely to invest in a company via a private offering of stock when a mechanism to sell their stock is in place should the company be successful.
In addition, the now-publicly held company obtains the benefits of public trading of its securities:

Increased liquidity of company stock
Higher company valuation due to a higher share price
Greater access to capital markets
Ability to acquire other companies through stock transactions
Ability to use stock incentive plans to attract and retain employees"


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