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Capital Raising
The market for micro-cap IPOs (where under $25 million of new capital is raised) has been virtually shut since 2000.
During the last few years, the combination of a reverse merger and private placement (PIPE) has filled the IPO void — and Keating has been at the forefront of this market trend. We typically raise $10-30 million in a PIPE contemporaneous with a going public transaction and act as either a lead or co-manager.
Unlike other placement agents, we generally set terms with the issuer before going to market (as opposed to soliciting term sheets from potential lead investors). We conduct 2-3 week road shows, including several days in Europe. Investors in Keating PIPEs are typically hedge funds (90%) and high net worth individuals (10%). From the time we have a private placement memorandum in hand, it typically takes 4-6 weeks (including the time on the road) to complete the PIPE.
Typical Capital Raising Fee
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