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SCOR FAQ. Part 5


This article is from the Investing Articles: Public Offerings: IPO and DPO series.

SCOR FAQ. Part 5

15. Can the company fund its SCOR offering through bridge financing?
The offering can be funded by such methods as an SBA "LOW DOC" loan or raising the money by a "quick-fix" subscription offering or other alternatives. It is possible, depending upon the company, to complete a SCOR Offering with an initial investment of $5,000 on the part of the company. This is achieved by undertaking a "quick fix" bridge equity offering followed by a SCOR Offering. DFS can advise and assist on this topic.

16. What is the cost to the company if the offering is not a success?
The company must pay the professional registration fees, outside counsel, outside independent auditor, escrow fees, state filing fees, advertising & marketing fees, printing and postage. Selling commissions are paid only on moneys received by the company, No success, No fee.

17. How much does the company receive?
Net of all expenses, the company will receive on average a net of $800,000+/- if the offering is sold out at $1 million.

18. How are states chosen in which to register?

At DFS , before recommending the states for registration, we take into account the following: prospect base residency, proximity, advertising restrictions, escrow rules, filing, registration, merit review approvals, and "substantive fairness" attitudes of each state's administrator.

19. Is there any difference between existing stock and SCOR stock?
Usually. Existing stock is usually deemed "promoters stock or cheap stock" and there are restrictions on stock splits, dividends, and resale of the stock. The State or States in which the offering is registered generally requires that the promoters stock be escrowed for a period of three to eight years. The rules are different if the company is quoted on the SCOR Market Place of the Pacific Stock Exchange.

20. How do you go about a SCOR LPO offering?
There are 3 MAJOR phases to a SCOR offering: IBC Inc can directly and indirectly handle all three phases for the Issuer.
i. Evaluating and preparing the company for an offering by reviewing all corporate documents,
restructuring the capital structure, and analyzing the appropriate states in which to file. Preparing the U-7, U-1, U-2, and U-2a documents, securing the required audit and documents from your corporate attorney and CPA, negotiating merit review substantive fairness issues with the state or states selected for the offering, structuring escrow arrangements and receiving the permit to sell.

ii Promoting and advertising the offering to a suitable prospect base, there by generating sufficient investor inquiries to break escrow and eventually close out the offering. Designing, Printing and Distributing the Offering Documents.

iii. retailing the investment to a suitable prospect base, and most importantly closing the sale of the stock to investors through a Broker - Dealer Firm and / or the issuer's appointed and qualified management.
A successful closing of the offering is best achieved through utilizing a variety avenues.


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