Cost of Taking Your Company Public Using Regulation A+, if you choose this route. The video does not discuss the Manhattan Street Capital fee, which is charged per investor when a company starts the offering after having received Qualification from the SEC, plus warrants.
The question is what is the cost to take my company public using
Regulation A+ on Manhattan Street Capital? These are the costs. The first cost is marketing so probably the minimum you could get away with for an offering that is easy to sell is 4% but 6-9% is more typical, in marketing cost. (not charged as a percentage)
Then the legal costs of a service provider to complete the SEC process are fifty thousand dollars using a specialized service provider that we have. And the cost of an audit which is only required in a Tier 2.
offering will be whatever it is. For a simple company it might be twenty thousand dollars or perhaps less, and for a complex company, it could be significantly more. Then the cost of registering your company to get a ticker from the OTCQB marketplace: two thousand five hundred dollars with an ongoing renewal fee of ten thousand dollars per year to stay listed. Then ongoing reporting requirements which are going to vary according to the scale of your operation, you are required to have an audit once a year and with the QB marketplace, six monthly reporting of revenues and profits and any significant changes in the business must be reported when the occur. So you can see how the ongoing reporting requirements for a QB listing might be as low as sixty thousand dollars a year or a hundred thousand dollars a year and of course, depending on your service providers. It’s up to you as to who you work with. But that should give you a framework for the numbers. The video does not include the Manhattan Street Capital fee, see here.
If your company meets the requirements of the NYSE or the NASDAQ, then you can choose to go public on their stock markets. The annual fee on the NASDAQ is around $40,000, on the NYSE it is $50,000 and above. When you make an IPO to these markets then you will need to pay a higher legal fee of at least $100k and more when a broker-dealer is involved. The full burden of S-1 reporting also kicks in post offering, which is far more expensive than when you simply list your company on the OTCQB or OTCQX - in the case of the QB the reporting requirement is the same as for Reg A+ Tier 2, and for the QX, quarterly reporting but still one annual audit.