Innovative Funding

Has your company been trying to raise capital but has been repeatedly rejected by investment banks and venture capitalists? Our mission is to provide rapid, innovative funding for qualified companies.

To fully understand our unique financing solutions, it is helpful to be familiar with the following five concepts:

1. Self-underwriting – a process where a private company files documents and audited financials with the SEC in order to sell stock to investors resulting in a publicly trading stock

2. Private Investment in Public Entity (PIPE) – a transaction in which accredited investors are allowed to purchase stock. The stock is registered with the SEC so that it may be resold to the public.

3. Shell Company – a company created to file documents with the SEC to receive a trading symbol and the authority to trade shares. Or a defunct operating company with a trading symbol, also available to trade stocks.

4. Reverse Merger - occurs when a private company issues stock to a shell provider for purchasing a shell company. The new company now has publicly tradable stock. This transaction is generally concurrent with a PIPE -- not the best alternative.

5. Market Maker – PIPE shares and self underwriting shares must have minimal trading activity which is provided by institutions who supply a bid price and an ask price to create a public market for stock.

If a well qualified private company is too small to attract an underwriter, there are available alternatives. Small companies ready to raise money or become publicly traded can achieve these goals through our innovative methods.   

Premier Capital Alternatives’ recommended approach to raising capital is a sequenced formation, eventually leading to a Self-Underwriting followed by a Private Investment in Public Entity. We can provide Mezzanine Financing.  Compared to a Reverse Merger or Initial Public Offering, this process is less expensive, faster to closing, has fewer SEC restrictions and is more attractive to investors. Additionally, we will purchase equity in your company to defray the costs of filing and registration with the SEC and FINRA. Upon our closing of a Private Investment in Public Entity, our firm will acquire the services of market makers that will deliver trading volume, a mandatory step to a PIPE.

Another funding model is for your private company to reverse merge with our non-operating shell company, which will already be audited and have a trading symbol. A Private Investment in Public Entity transaction will occur simultaneous with the reverse merger.

Our financing solutions offer significant advantages for our clients: