What fee does Manhattan Street Capital charge?
For Regulation A+ Offerings:
When a company has completed the Qualification step with the SEC (typically 70 days after filing a complete Form 1-A), and when the issuing company chooses to move forward with the offering and open it up to investors, then Manhattan Street Capital charges the company making the offering the MSC bulletin board technology and administrative fee of $25 per investor in the offering (not charged for reservations). The $25 per investor fee is constant regardless of the investment amount from each investor, and it is not dependent on the total size of the capital raise. The fee is invoiced by MSC and due for payment weekly by the company raising capital, not by the investor. This fee is an obligation of the offering/issuing company regardless of the success or failure of the offering.
Manhattan Street Capital also charges a fee of ten-year cashless warrants to purchase stock in the issuing company, at the IssuePrice(TM) of the Regulation A+ offering, in USD amount of $25 of warrant value per investor. The warrants payment is an obligation of the issuing company regardless of the success or failure of the Reg A+ offering (warrants are similar to a fixed price option contract).
For example, if an issuing company selling Reg A+ shares at a per share price of $26 had 800 investors that purchased shares in its offering, then the Issuer would pay Manhattan Street Capital the bulletin board and technology admin fee of (25x800) = $20,000.
In this example, the total dollar value of the warrants payable would be $20,000 at the same per share price as investors in the offering paid.
The minimum cash payment due to Manhattan Street Capital for Qualified Reg A+ offerings that are accepting investors is $5k per month.
We also charge an optional $4,000 monthly fee per company for our CrowdAnalyst(TM) Research Analyst service, in which our Analyst members analyze a company's competitive landscape and market, and make earnings and revenue forecasts after companies have completed their offering. From this fee we will pay our members who prepare CrowdAnalyst(TM) Ratings. This service starts after the Reg A+ offering is finished.
We will charge monthly for other services to help our companies after they complete their offerings, for example, to train them to communicate with their investors.
For the RegA+Audition(TM) MSC charges a standard price of $10k/mth (currently available for the reduced price of $5k per month) including marketing for a minimum of two months. Note that the marketing services provided in the program are provided by a separate marketing agency, not by Manhattan Street Capital. See the RegA+Audition(TM) FAQ.
For Reg D 506C Offerings:
In addition to the fees described above, MSC charges companies making a Reg D offering on the Platform, a monthly listing fee paid in advance that is negotiated between Company and MSC.