http://www.TheSecuritiesAttorneys.com Reg A – Hitting the Market Perceptions of the success of your offering and your company will depend on how your stock trades. It is important that your stock trades initially at a premium to the offering price - if it goes down months later the market will forgive you. The only way to do this is to price the deal properly and create excess demand – sell more stock than you are offering. You should study how your company is priced compared to already public similar companies. We recommend that you offer the stock at a discount of about 10% to like companies. Remember your rate of growth is most important in pricing your IPO. You should also create demand for about 10-20% more stock than you are selling. Hopefully some of this excess demand will go into the market and buy when your stock starts trading. Remember the Facebook IPO face plant? They sold stock to fill all the demand and the stock sank like a stone. John E. Lux is a securities attorney and former IPO market maker www.TheSecuritiesAttorneys.com Want to know more? – email me at John.Lux@ Securities-Law.info (240) 200-4529 John E. Lux was in the top 5% of authors on Slideshare in 2014 and has been quoted by Bloomberg as an expert on reverse mergers This is part of a series on Regulation A, so subscribe here for more and to learn more, go to www. TheSecuritiesAttorneys.com and get a free copy of our book “How to Go Public” Disclaimer This is not legal or investment advice of any kind Seek competent advice from qualified attorneys and investment bankers Your situation may vary The more you know about finance and business, the more you can profit

1. www.TheSecuritiesAttorneys.com
Reg A –
Hitting the Market

2. www.TheSecuritiesAttorneys.com
Perceptions of the
success of your
offering and your
company will
depend on how
your stock trades

3. It is important that your
stock trades initially
at a premium to the
offering price - if it
goes down months
later the market will
forgive you

4. The only way to do
this is to price the
deal properly and
create excess
demand – sell more
stock than you are
offering

5. You should study
how your
company is
priced compared
to already public
similar
companies

6. We recommend that
you offer the stock
at a discount of
about 10% to like
companies

7. Remember your
rate of growth is
most important in
pricing your IPO

8. You should also
create demand for
about 10-20% more
stock than you are
selling

9. Hopefully some of this
excess demand will
go into the market
and buy when your
stock starts trading

10. Remember the
Facebook IPO
face plant? They
sold stock to fill
all the demand
and the stock
sank like a stone

11. John E. Lux is a
securities
attorney and
former IPO
market maker

12. www.TheSecuritiesAttorneys.com
This is part of a series on Regulation
A, so subscribe here for more and
to learn more, go to www.
TheSecuritiesAttorneys.com
and get a free copy of our book
“How to Go Public”

13. www.TheSecuritiesAttorneys.com

Want to know
more? – email
me at John.Lux@
Securities-
Law.info

(240) 200-4529

14. John E. Lux was in
the top 5% of
authors on
Slideshare in
2014 and has
been quoted by
Bloomberg as an
expert on reverse
mergers

15. Disclaimer

This is not legal or
investment advice of any
kind

Seek competent advice
from qualified attorneys
and investment bankers

Your situation may vary

The more you know about
finance and business, the
more you can profit