Underwriters say the public expects your stock to hit $15 within 3 years (or much sooner). You believe it will hit $20. The underwriters promise to communicate your story, but, given the risks, caution that $10 is realistic. Fees / expenses will be over 5%.
In a Cash xPRTtm offering, tomorrow's price todaytm (or close to it) is what a firm receives for issuing equity if it hits its self-selected target. In this example, that means receipt of nearly $20 per share instead of $10. Payment is in part up front with the balance upon achieving the target.
A Cash xPRTtm is the same instrument we use for Cashless Buybackstm, and, for IPOs / new offerings, it can deliver a far higher price and far lower fees than a standard issuance of common shares. Though not a riskless transaction like a Cashless Buybacktm and potentially subject to more complex accounting, the reward is exceptionally high.
Better Investor Base
A Cash xPRTtm offering's key purpose is to substantially improve pricing on an equity offering, but it also attracts a broader investor base. For instance, for a high growth, high volatility technology company, a Cash xPRTtm offering can be expected to attract a new group of value investors.
Better Liquidity
A Cash xPRTtm offering creates constructive arbitrage. That means substantial liquidity (trading volume) especially for companies with market capitalizations under $1 billion (microcap, nanocap, and venture phase public companies). Any company whose daily trading volume is below 2% of outstanding shares will likely benefit.
We Partner with Your Banking Partners
Our products are proprietary. We can architect and execute transactions unassisted. Nonetheless, your bankers have earned your confidence. We are ready to serve as their advisors if we serve you best by serving them.