These are for a company going public, which is essentially what we would be doing in moving to NASDAQ.

The company’s prospects for future success must be good: If the company’s recent sales or earnings have been, or are expected to be, adversely affected by competition, losses or other serious problems, it may be advisable to postpone financing until the company’s performance indicates that such difficulties have been overcome.

Good market conditions should prevail at the time of an offering: If overall market conditions are not considered good, a company could be faced with the possibilities of selling stock at a lower than desirable price, selling less stock than was intended and/or not being able to complete the offering at all.

Structuring a company to go public

The offering price must be tailored toward the potential investor. A $10 to $20 offering price per share is the optimum range for most retail investors today. A price below $5 can have negative connotations for both salesmen and investors, as it will be categorized as a “penny stock.” A price greater than $20 requires an amount of money for a round-lot purchase (100 shares) and is more than many retail investors prefer to invest.

Pricing of a company’s stock

The valuation of a company’s stock is influenced by four important factors:

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