Go Public / IPO Without Giving Up Equity

Mr. Steven Mueller, Managing Partner

I am Steve Mueller, Managing Partner of Syndicate Legal Services.

Today’s topic, “Can my Startup Go Public Without Giving up Equity?”

YES, a startup, or a company at any stage, can go public without giving up Equity!!!

Though it is not common, it is also not “uncommon.”

The best way to do this is through a “Convertible Preferred Stock Offering”

Through this type of Initial Public Offering,

Your startup gives up no equity today…

So, how do we make this type of offering work for your company and the shareholders?

First, the Convertible Preferred Shares will have a “cumulative annual rate of return”….

For example, purposes, let’s say this cumulative rate of return is six percent per annum...

So, if Investor "A" buys Convertible Preferred Shares for $10.00 per share, in one year

the value of each Convertible Preferred Share is $10.60…

And in two years, each Convertible Preferred Share is worth $11.24…

In 3 years, each Convertible Preferred Share is worth $11.91...

In 4 years, each Convertible Preferred Share is worth $12.62...

And finally, in 5 years, each Convertible Preferred Share is worth $13.38...

Now, a six percent annual rate of return is not a great return for an investment in a startup, so we include a discount on the price of common shares at conversion.

With this type of IPO, it is the conversion feature that sells…

So, let’s say the conversion of each Convertible Preferred Share was that the Investors get to convert each Convertible Preferred Share to Common Shares in the company at a discount of 10% under the market value of common shares.

In this scenario, let’s say common shares of the company were trading at $25.00 per share on the date of conversion in three, four or five years.

And let’s say Investor “A” owned 100 Convertible Preferred Shares, and in 5 years Investor “A” had to convert his Convertible Preferred Shares to Common Shares in the company.

After five years of six percent annual returns per annum, each Convertible Preferred Share now is valued at $13.38 per share as I detailed earlier.

So, Investor “A’s” one hundred Convertible Preferred Shares now have a combined value of $1,338.

If Investor “A” gets a 15% discount on Common Shares of the company at conversion, and each common share is valued at $25 per share, Investor “A's” a buy price per share of common is $21.25.

So, Investor “A” will get 63 Common Shares of the Company for his $1,338 of Convertible Preferred Shares, which is a $237 discount for the Common Shares.

So, if you are looking for fast funding for your company without giving up any equity in your Company today, and with little to no upfront fees and costs, call Syndicate Legal Services today to get your Company and your Convertible Preferred Share listed on the O.T.C. Market and funded in just a few weeks’ time.