Zolis, I thought the S1 Joe is referring to is for
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Posted On: 12/11/2019 3:07:26 PM
Re: Zolis_onkel #9931
Zolis, I thought the S1 Joe is referring to is for funding (ie, the $40 million he spoke of on the latest CC). He spoke about getting the funding to remove the "going concern" note that GNBT is required to file in the 10k.
Seems like there are multiple reasons to file an S1, including IPOs and secondary offerings. So it's unclear whether this is specifically for the Nas uplist or for funding. Perhaps it can be used for both?
From https://smallbusiness.chron.com/common-equity...61791.html
The IPO
When the S-1 is filed, the company enters a “quiet period.” Management and insiders are banned from making public comments about the offering. Meanwhile the SEC is fact-checking the S-1 to verify the information. The stock cannot be sold, but brokers can collect “indications of interest” from potential buyers. When the SEC is satisfied with the completeness of the S-1, it approves the offering. The underwriter and management set the offering price, and stock trading begins. If the price is set at a reasonable level, it will rise and investors will be happy. If management is greedy and sets the price high, the stock will fall from its offering level and investors may not see a profit for some time.
Secondary Offering
A secondary offering occurs when a publicly traded company needs to raise additional revenue for expansion or other worthwhile purpose. As with the IPO, the firm hires an investment banker that performs the same tasks. The underwriter and management set the number of shares being offered and the offering price. The price, of course, will be determined by the market price of the stock on the day of the offering. As with the IPO, the company must file an S-1 report, which the SEC will examine thoroughly. Secondary offerings do not generate the excitement of an IPO, since the stock is already trading.
Seems like there are multiple reasons to file an S1, including IPOs and secondary offerings. So it's unclear whether this is specifically for the Nas uplist or for funding. Perhaps it can be used for both?
From https://smallbusiness.chron.com/common-equity...61791.html
The IPO
When the S-1 is filed, the company enters a “quiet period.” Management and insiders are banned from making public comments about the offering. Meanwhile the SEC is fact-checking the S-1 to verify the information. The stock cannot be sold, but brokers can collect “indications of interest” from potential buyers. When the SEC is satisfied with the completeness of the S-1, it approves the offering. The underwriter and management set the offering price, and stock trading begins. If the price is set at a reasonable level, it will rise and investors will be happy. If management is greedy and sets the price high, the stock will fall from its offering level and investors may not see a profit for some time.
Secondary Offering
A secondary offering occurs when a publicly traded company needs to raise additional revenue for expansion or other worthwhile purpose. As with the IPO, the firm hires an investment banker that performs the same tasks. The underwriter and management set the number of shares being offered and the offering price. The price, of course, will be determined by the market price of the stock on the day of the offering. As with the IPO, the company must file an S-1 report, which the SEC will examine thoroughly. Secondary offerings do not generate the excitement of an IPO, since the stock is already trading.
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