This article is from the Investing Articles: Public Offerings: IPO and DPO series.
27.9 Set forth the use of the proceeds from this offering:
27.10(a) If material amounts of funds from sources other than this offering are to be used in conjunction with the proceeds from this offering, state the amounts and sources of such other funds and whether funds are firm or contingent.
27.10(b) If any material part of the proceeds is to be used to discharge indebtedness, describe the terms of such indebtedness, including interest rates.
27.10 (c) If any material amount of the proceeds are to be used to acquire assets not used in the normal course, list them.
27.10(d) If any amount of the proceeds is to be used to reimburse any officer, director employee or stockholder for services already rendered, assets previously transferred, or moneys loaned or advanced, or otherwise, explain.
27.11 Indicate whether the Company is having, within the next 12 months, any cash flow or liquidity problems.
27.12 Indicate whether proceeds from this offering will satisfy the Company's cash requirements for the next 12 months, and whether it will be necessary to raise additional funds. State the sources of additional funds, if known.
27.13 Indicate the capitalization of the Company as of the most recent balance sheet date and as adjusted to reflect the sale of the minimum and maximum amount of securities in this offering and the use of the net proceeds therefrom.
27.14 The securities offered hereby are:
27.15 These securities have:
27.16 Are securities convertible? Describe the characteristics of the securities.
27.17 If securities are notes or other types of debt securities, explain.
27.18 If securities are Preference or Preferred stock, are the unpaid dividends cumulative? Are securities callable?
27.19 If securities are capital stock of any type, indicate restrictions on dividends under loan or other financing arrangements or otherwise.
27.20 Current amount of assets available for payment of dividends.
27.21 The selling agents (that is, persons selling the securities as agents for the Company for a commission or other compensation) in this offering are:
27.22 Describe any compensation to selling agents or finders, including cash, securities, contracts, or other consideration.
27.23 Describe any material relationship between any of the selling agents or finders and the Company or management.
27.24 If this offering is not being made through selling agents, list the names of persons at the Company through which this offering is being made.
27.25(a) If this offering is being limited to a special group, such as employees of the Company, or is limited to a certain number of individuals, describe the limitations and any restrictions on resale that apply:
27.25(b) Will the certificates bear a legend notifying holders of such restrictions?
27.26(a) Name, address, and telephone number of independent bank or savings and loan association or other similar depository institution acting as escrow agent if proceeds are escrowed until minimum proceeds are raised.
27.26(b)(I) Date at which funds will be returned by escrow agent if minimum proceeds are not raised.
27.26(b)(ii) Will interest on proceeds during escrow period be paid to investors?
27.27 Explain the nature of any resale restrictions on presently outstanding shares, and when those restrictions will terminate, if this can be determined.