If you are a public company seeking to raise capital you need to increase the liquidity of your stock. Forget most investor relation companies (IR). You need to get more retail market support for you stock with market makers.
If you increase the daily trading volume to $25,000.00 per day you can raise capital even in this market with non-recourse stock loans. A third party shareholder pledges his stock as collateral for a 75% LTV stock loan. He in turn lends the capital to the public company in exchange for interest bearing notes, options, warrants or more stock.
The public company gets the capital they need without more dulition caused by selling discounted shares in a 504 or PIPE transactions. You pay back the stock loan and you get the shares back.
Stock loans do not require credit checks, personal guarantees or financial statements and there are no margin calls. If the stock goes up in value during the term of the loan the borrower can capture this appreciation. If the price drops the borrower as the option to walk away from the loan without any negative impact on his credit.
Visit www.mbcapital.net or call Michael N. Brette,J.D 951-236-8473 or email mikebrette@aol.com . Get your stock loan going and get your cash in 72 hours.
Tags: capital for public companies, financing504, margins loans, PIPE financing, stock loans
