How to Take a Chinese Or Indian Company Public in the United States

With global economics the way they are it would betransactions than their Asian counterparts. Write a
redundant to rant and rave about the downsides ofnew business plan based off of this new corporate
corporate fund-raising. Quick infusions of cash fromentity.
venture capital firms and institutional lenders are onAfter this you will use the Regulation D Rule 504
hold and it is what it is but companies are becomingexemption to offer discounted stock to a core group
creative and corporate attention is steering awayof investors via DPO (direct public offering) we have
from the problems and toward the solutions.spent 11 years putting our core group of investors
The US and Chinese markets are intertwined in manytogether that can finance around 80% of the public
ways and now a new trend in finance is making theprocess so it becomes extremely reasonably priced
relationship even closer. It's a fact that Chinesefor foreign companies. Then the S1 is put together
corporations are still trying to figure out how towhile simultaneously their SEC audit begins which is
make their domestic stock market profitable andsimple and fast because the company in the US is a
stable. Many of these companies have globalstartup. We go through and get the SEC approval,
ambitions with unique technology solutions businessthen FINRA and then the market maker that we
products and strategies but because of the weekhave attached to the deal goes to work.
Chinese economy (compared to the power of otherNow here is the kicker. If you have any experience
currencies) they have no choice but to head to thewith taking companies public you'll see one common
Frankfurt Exchange or the OTCBB market here inthread throughout all the companies that you work
the United States.with and that is the fact that the company
As a corporate consultant that facilitates the processexecutives who started this company and are more
of going public for both domestic and global entities Ithan likely the majority share holders, want to retain
have received maybe 5 to 10 calls per year fromas much equity as possible so this is simple. When the
Chinese companies wanting to set up Americancompany is publicly trading, limit the issuance of stock
corporate subsidiaries to absorb their foreignspecifically to your original core group and let the
corporations and trade on the Bulletin Boards but allstock price stabilize then you simply take some of
that has changed. I now receive 5 to 10 calls fromthe company owned shares and use them as
Chinese and Indian companies per week to takecollateral for equity loans and lines of credit.
advantage of the global market place that centersOnce you're public the last thing you want to do is
around America's gravitational pull.liquidate shares to raise capital quickly. Instead, use
Here is how you can take your foreign entity public:your shares as collateralized bartering chips and you'll
set up a domestic corporation (I usually havenever have a problem with cash flow or fund raising
corporations set up in Delaware because its fast,or the threat of losing control of your company.
easy and the states statutes go back to the originalForeign companies that want to go public in the
13 colonies so there is sufficient case law andUnited States are often intimidated by the strenuous
precedence to protect a public entity effectively).process and the concern of 'who to trust'. Find a
Next you will need a professionally written businessconsulting firm with experience in turnkey 'go public'
plan in English. Translated business plans don't work asfacilitation and you'll be fine.
Western investors look for different details in