Going Public on the OTCBB or the Pink Sheets

Kensington Capital Corporation will help facilitate a comprehensive going public program, taking your company public on the Over The Counter Bulletin Board OTCBB or on the pink sheets. As part of the going public process for the OTC Bulletin Board and the Pink Sheets, an introductory market maker must demonstrate compliance with SEC Rule 15c-211, which involves a substantial amount of due diligence and filing of Information Statement on Form 211 with the regulatory authorities.

What is Going Public

Going public or as it sis call an initial public offering (IPO) is the sale of equity in a company, generally in the form of shares of common stock, through an investment banking firm. These shares subsequently trade on a recognized stock market. For smaller, emerging companies, the stock market will probably be the OTC Bulletin Board or Pinksheets

Which Companies Benefit most from Going Public

Startup companies must demonstrate the potential to develop into profitable enterprises that will deliver significant annual increases in sales and earnings before going public. Established companies must also demonstrate significant future growth potential before going public. There is no true minimum growth requirement prior to going public however a minimum earnings growth potential of 20 percent per year, is often found among companies going public and the company should be able to achieve a valuation (total shares outstanding times their price) of at least $100 million to be truly successful as a publicly held corporation.

We help small, qualified companies prepare and file the necessary paperwork to get them to go public on the OTC Bulletin Board or the Pink Sheets promptly and efficiently. Although most of our clients aim for the OTCBB, we welcome companies that intend to use the Pink Sheets listing as an intermediate step to becoming a fully reporting company with the SEC.

What distinguishes Kensington Capital from other market makers is that we conduct a great deal of due diligence on each and every Form 211 client. A substantial amount of front-end research combined with years of experience makes the process as timely and efficient as possible.