Jasmine’s Kitchen (JK) creates custom kitchenware for restaurants. They need capital for product development and expansion. They decide to pursue a Reg A+ Mini IPO on the NASDAQ. The NASDAQ is a national exchange, so JK’s executives need to meet its requirements. Here are the steps JK executives must follow to achieve their goals.
1. Although Reg A+ has two tiers, only Tier 2 issuers can offer stock on a national exchange. So, JK prepares for a Tier 2 offering to raise up to $75 million over 12 months.
2. JK engages a stock transfer agent, Colonial Stock Transfer, to manage the stockholders and investor list, issue shares, prepare for the IPO and work with NASDAQ, brokers, and other key stakeholders.
3. Next, the kitchenware designer engages an underwriter for its NASDAQ listing. The underwriter will market and secure investors for the offering.
4. The company hires a US-GAAP auditor for the audit needed so it can publish its financials in its SEC filing.
5. JK is running low on cash, so they decide to increase the pace in preparation of the Form 1-A for submission to the SEC.
6. Next, JK’s executive team contacts an EDGAR filing agent, Colonial Filings, to submit the SEC filing.
7. The SEC reviews JK’s reporting and audit results. During and before the filing, JK is able to test the waters, gauging the interest of investors already affiliated with JK. Once the SEC accepts JK’s 1-A filing, the company can move forward in its final steps.
8. JK’s underwriter continues selling the last of the shares offered in the Reg A+ and is now ready for listing onto NASDAQ.
9. JK’s executive team, underwriter, and transfer agent meet for the closing call to confirm receipt of funds and share issuance to shareholders. As soon as these transactions take place, trading begins.
