www.TheSecuritiesAttorneys.com

Reg A – Hitting the Market

www.TheSecuritiesAttorneys.com

Perceptions of the success of your

offering and your company will

depend on how your stock trades

It is important that your

stock trades initially at a premium to the offering price - if it goes down months

later the market will forgive you

The only way to do

this is to price the deal properly and

create excess demand – sell more stock than you are

offering

You should study

how your company is

priced compared to already public

similar companies

We recommend that

you offer the stock at a discount of

about 10% to like companies

Remember your rate of growth is

most important in pricing your IPO

You should also create demand for

about 10-20% more stock than you are

selling

Hopefully some of this

excess demand will go into the market and buy when your stock starts trading

Remember the Facebook IPO

face plant? They sold stock to fill all the demand and the stock

sank like a stone

John E. Lux is a securities

attorney and former IPO

market maker

www.TheSecuritiesAttorneys.com

This is part of a series on Regulation A, so subscribe here for more and

to learn more, go to www. TheSecuritiesAttorneys.com

and get a free copy of our book

“How to Go Public”

www.TheSecuritiesAttorneys.com

Want to know more? – email me at John.Lux@ Securities-Law.info

(240) 200-4529

John E. Lux was in

the top 5% of authors on

Slideshare in 2014 and has

been quoted by Bloomberg as an expert on reverse

mergers

Disclaimer

This is not legal or investment advice of any kind

Seek competent advice from qualified attorneys and investment bankers

Your situation may vary

The more you know about finance and business, the more you can profit