"Going Public" Using RedChip’s Direct Filing Process
Over the past two years, the direct-filing process has emerged as a legitimate and cost-effective method of "going public" for smaller-cap companies. The direct filing process allows private companies to avoid the substantial costs and cash outlays of the reverse-merger process or the IPO. Our team of experts guides private companies through the entire turnkey process from start to finish. RedChip organizes every aspect of going public, including providing the market maker for the 15c211, the transfer agent, and the often neglected but critical after-market support to help create a long-term, loyal following of retail and institutional investors once the Company is public. RedChip also assists the company in moving to the NASDAQ or AMEX once the company is public.
Private companies going public as an OTC NASDAQ (commonly known as bulletin board companies) using the direct filing process must meet the following criteria:
- two-year operating history
- two years of audited financial statements (GAAP)
- minimum of 50 shareholders (we can assist in building the minimum shareholder base)
- focused and disciplined management team with a proven track record
- a large market opportunity for the product or service
- concrete evidence of growing sales and improving margins
- profitability or near-term profitability
- audited financials using U.S. GAAP
- $50 million minimum market capitalization
- $5 million in stockholders' equity or $750,000 of net income from continuing operations
- pre-tax income of $750,000 in the latest year or two of the last three fiscal years
- shareholders’ equity of $4 million
- two-year operating history
- a minimum of 50 shareholders
- a minimum of 500,000 shares outstanding in the private company
- two years of financial statements
- focused and disciplined management team with a proven track record
- a large market opportunity for the product or service
- concrete evidence of growing sales and improving margins
- profitability or near-term profitability
RedChip's 15-year history as the premier small-cap research firm has allowed us to build relationships with thousands of small-cap fund-managers, retail stockbrokers and independent investors across the United States and Europe. These investors serve as a major source of investment capital for our clients seeking $3 million to $25 million in direct funding. We organize and sponsor four conferences annually in major cities across the United States, among them Boston, Los Angeles, Miami, New York, Phoenix, and San Francisco. At these conferences, we bring our clients together with fund managers, some of whom manage more than $1 billion in assets, to discuss opportunities for direct funding. Our conferences draw as many as 500 qualified small-cap RedChip investors looking for undiscovered situations.
After-market support and investor relations
RedChip discovered Starbucks, Nike, MarketWatch.com, and Daktronics when they were still smaller-cap companies. Over its 15-year history, RedChip has developed the largest following of small-cap investors in North America. It is critical for public companies to engage in serious, systematic, and aggressive efforts at investor relations in order to maximize value for the shareholders.
Our research team
Our After Market Support services are the best and most comprehensive in the small-cap sector. We provide a full research report written by one of our CFAs and distribute it to 150,000 investors digitally and to the RedChip elite, our top 5,000 money managers, retail stock brokers, and individual investors.
Our specialist marketing team
Our investor-relations programs include outbound telephone calls by our highly trained specialists to fund managers and retail stockbrokers across the United States. Our specialists position our client’s story and qualify the managers and brokers as potential open-market buyers of the stock.
Internet marketing through our two highly acclaimed Web sites
We provide a full build-out of an investor-relations Web page for all our clients. The page includes all public information available on the company. The site is automatically updated daily with the latest 10Qs, 10Ks, press-releases, charts, company presentations, profile, institutional holders, and much more. Our two Web sites receive thousands of hits each day from qualified small-cap investors. In fact, www.redchip.com and www.runonideas.com receive more traffic than any other investor-relations Web site in the United States (see the ratings of alexa.com). Investors can request due-diligence packages online and even pose questions about our client companies in real time to our marketing specialists and receive answers in real time.
Audio-visual interviews and presentations
We provide an audio-visual presentation of all clients who participate in RedChip conferences and then rotate the presentation on the home pages of our two Web sites. We can track all visitors to the presentation. This audio-visual presentation allows our investors to see and hear the CEOs of our clients.
Products and Services
TESTIMONIALS
“I have been presenting at RedChip conferences for years and have always found them of great value. The Hollywood conference was teaming with small-cap fund managers, retail stock brokers and individual investors. RedChip is a top-flight small-cap research firm and I am proud to be associated with them. I am looking forward to presenting at the New York RedChip conference in August.”
Barry Sloane, CEO - Newtek Business Services
“RedChip Companies is a very strong investor relations firm. Their platform of services, including research, conferences, radio and their out-bound marketing program to retail and institutional players is in my opinion, the best in the industry. They deliver results. I strongly recommend them to small-cap companies who need to build their shareholder base and reach thousands of retail, institutional and accredited investors.”
Lee Rosen, Chairman - H2Diesel
“Thank you very much for all of your help with the RedChip conference in Scottsdale. The number of investors that have come to Noble Innovations from the conference continues to grow each day. I was very pleased with the way it was run and the quality of people, both presenters and attendees, with whom I had the pleasure to associate.”
Jim Cole, President and CEO, Noble Innovations, Inc.
“The RedChip Conference in New York was one of the best organized small-cap conferences at which I have presented. The room was packed full of fund-managers, brokers, and high net worth individuals when I made my presentation. The RedChip staff was excellent in every way.”
Paul Intlekofer, CEO - Nutrition 21
“RedChip has done an outstanding job of executing beyond our expectation by generating awareness and bringing potential new investors to Vertical Branding. The entire RedChip team has been working relentlessly and with integrity to help VBI obtain a higher profile. Our stock is up 100% since we hired RedChip five months ago and our market cap has doubled. The stock literally did not trade when we hired RedChip. Their Specialist Marketing Team has brought serious long-term buyers into our stock and put us together with numerous micro-cap funds and retail brokers. They are a smart, disciplined team with a large following of small-cap investors. Their research report was thorough, well-written, and effective. Needless to say, I am a big fan of RedChip.”
Nancy Duitch, CEO - Vertical Branding, Inc.
Barry Sloane, CEO - Newtek Business Services
“RedChip Companies is a very strong investor relations firm. Their platform of services, including research, conferences, radio and their out-bound marketing program to retail and institutional players is in my opinion, the best in the industry. They deliver results. I strongly recommend them to small-cap companies who need to build their shareholder base and reach thousands of retail, institutional and accredited investors.”
Lee Rosen, Chairman - H2Diesel
“Thank you very much for all of your help with the RedChip conference in Scottsdale. The number of investors that have come to Noble Innovations from the conference continues to grow each day. I was very pleased with the way it was run and the quality of people, both presenters and attendees, with whom I had the pleasure to associate.”
Jim Cole, President and CEO, Noble Innovations, Inc.
“The RedChip Conference in New York was one of the best organized small-cap conferences at which I have presented. The room was packed full of fund-managers, brokers, and high net worth individuals when I made my presentation. The RedChip staff was excellent in every way.”
Paul Intlekofer, CEO - Nutrition 21
“RedChip has done an outstanding job of executing beyond our expectation by generating awareness and bringing potential new investors to Vertical Branding. The entire RedChip team has been working relentlessly and with integrity to help VBI obtain a higher profile. Our stock is up 100% since we hired RedChip five months ago and our market cap has doubled. The stock literally did not trade when we hired RedChip. Their Specialist Marketing Team has brought serious long-term buyers into our stock and put us together with numerous micro-cap funds and retail brokers. They are a smart, disciplined team with a large following of small-cap investors. Their research report was thorough, well-written, and effective. Needless to say, I am a big fan of RedChip.”
Nancy Duitch, CEO - Vertical Branding, Inc.