A Direct Public Offering (“DPO”) like an Initial Public Offering (“IPO”) eliminates many of the risks and expenses associated with reverse mergers into public shell companies. Issuers going public using a DPO also have fewer hurdles to obtaining electronic trading from Depository Trust Company (“DTC”).

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Going public is still considered a benefit to issuers seeking to raise capital or obtain recognition of
their business. Even in a down economy, private companies seek the perceived benefits of being
publicly traded. While there are a variety of ways to create a publicly traded company, each
comes with its own unique requirements and risks. A Direct Public Offering (“DPO”) like an
Initial Public Offering (“IPO”) eliminates many of the risks and expenses associated with reverse
mergers into public shell companies. Issuers going public using a DPO also have fewer hurdles to
obtaining electronic trading from Depository Trust Company (“DTC”).
Reverse merger companies often encounter DTC chills and global locks because of prior
unregistered securities issuances and the public shells prior management.
Going public is still considered a benefit to issuers seeking to raise capital or obtain recognition of
their business. Even in a down economy, private companies seek the perceived benefits of being
publicly traded. While there are a variety of ways to create a publicly traded company, each
comes with its own unique requirements and risks. The DPO eliminates many of the risks and
expenses associated with reverse mergers into public shell companies. Issuers going public using
a DPO also have fewer hurdles to obtaining electronic trading from Depository Trust Company
(“DTC”).
Reverse merger companies often encounter DTC chills and global locks because of prior
unregistered securities issuances and the public shells prior management.
Types of Registered Offerings: Issuers going public with an IPO or DPO must file a
registration statement on Form S-1 or other registration statement form pursuant to the Securities
Act of 1933, as amended (the “Securities Act”). The most commonly used registration statement
is Form S-1 for domestic issuers and Form F-1 for foreign issuers seeking to go public.
• Initial Public Offering

2. An initial public offering (“IPO”) is where an investment banking firm assists an issuer with
raising funds by selling securities that have been registered under the Securities Act of 1933, as
amended (the “Securities Act”). Many issuers will not meet the income, asset, revenue or capital
requirements that investment banking firms require.
• Direct Public Offering
A direct public offering (“DPO”) involves an issuer filing a registration statement with the SEC,
typically on Form S-1 (“S-1″), that registers shares from the issuer’s treasury. Once the SEC
declares the registration statement effective, the issuer then sells the registered securities directly
to investors without the use of an underwriter. A direct public offering can also involve the issuer
filing a resale registration on Form S-1 to register shares that its existing shareholders hold. This
method does not register securities for the issuer to sell to investors.