FUNDING THROUGH OUR INVESTMENT BANKERS for tvcp
Many investors have written to us about the question of why we can?t release the NAME of the investment banking institution that has been working
with us on our $75 million financing. Here?s how the process works, and why it works this way:
1)The company engages a merchant banker, (at this moment un-named) to arrange equity funding. The merchant banker together with the company
officials discuss and agree on the level of financing over a specific period of time, also taking into account the company's business plan and the use of proceeds.
2) An agreement is then signed disclosing the amount of money, but according to SEC Rule 135, the company is NOT allowed to disclose the name
of the merchant banker until the name is filed with the SEC, at which time it becomes public knowledge.
3) The company then tells the merchant banker when it wants the first tranche of cash. Obviously, we do not need $75 million in one go. The
merchant banker then identifies the first "Funder" which can be a bank, an investor, an institution or anyone else the merchant banker brings to the table.
4) The Funder then asks the company for a full due diligence package. This ranges from a list of questions to a request for copies of all contracts,
agreements, financials, etc.
5) Upon the delivery of the due diligence answers, the Funder checks that all is ok, and then agrees through the merchant banker to deliver the funds.
Then the entire transaction is filed with the SEC in a document called a "Registration".
6) At this point, the Company is allowed to make a public announcement, and the names of all parties are divulged, as well as the amount of the
drawn-down and the number and type of shares issued.
Posted on RB
Michael Zwebner
President of TVCP |
