Laura Anthony, a corporate and securities attorney with law firm Anthony L.G., PLLC., talks with New to the Street’s TV Host, Jane King. Laura explains the three ways most companies go public: traditional IPO (Initial Public Offering), reverse merger into a public entity, or direct listing. The conventional IPO method comes with a capital raise and underwriters. Reverse Mergers are another possibility where a private corporation merges with a public entity. A Direct listing occurs mainly when large private entities decide to go public. OTC Markets is where small public companies usually list their shares for public trade. Laura explains that SPAC – Special Purpose Acquisition Company are a reverse merger, but SPACs typically have cash on their balance sheets to effectuate a closing with a private entity. SPAC management negotiates capital movements and redemptions before closing deals. Regardless of which public method, insiders, and affiliates sign lock-up agreements for a period before they can trade shares. These agreements establish trading restrictions that can help ensure trading performance before blocks of shares hit the market too soon after public launch. The US SEC requires insiders and affiliates to file ownership reports, disclosing public holdings and trades. Being public allows for the formation of long-term strategies, and public listing allows for creating stock option plans that can help attract the right talent, retain key personnel, and give employees ownership interests in a company. If you need a seasoned corporate and securities law firm, contact Laura Anthony, Anthony L.G., PLLC. The on-screen QR code is available during the show; download or visit Anthony L.G., PLLC – https://anthonypllc.com/. The interview airs on Newsmax, episode 464, May 6, 2023, at 3:30 PM ET
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