Stag Financial Group, Inc. -- Raising Funds and Capital Formation


Funding

The primary reason our clients wish to "go public" is to have better and faster access to the public capital marketplace. Because of this Stag Financial Group works with a growing number of affiliates involved in various aspects of raising capital for small-cap publicly traded companies. Stag Financial assists its client's in developing a sound funding plan that takes into consideration the client's capital structure and short-term and long-term capital needs. From there Stag Financial will makes all of the necessary introductions to secure the client their required funding. Stag Financial Group has extensive experience in structuring capital raising plans utilizing various strategies, including some of the following options:

Initial Public Offerings (IPOs)	Stag Financial can assist clients with pre- and post-IPO planning and help structure and position the client for its grand entrance into the world of public finance. After preparing the strategy and determining its overall feasibility, Stag Financial will introduce the client to various affiliate registered broker-dealers who will handle the underwriting of the actual offering. Stag Financial will insure that all necessary filings are made accurately and in a timely manner. Typical Raise: $75,000 - $5,000,000
Second and Third Round Follow-On Offerings	After a client has demonstrated a certain level of success with earlier funding(s), Stag Financial may be able to assist with the planning and structuring of second and third round follow-on offerings. Follow-on funding is conducted in the same manner as an Initial Public Offering, but just after the client has been public for some time. Follow-on funding often is critical to capital needs of a rapidly growing business. Typical Raise: $1,000,000 - $10,000,000+
Equity Lines of Credit or Private Investments in Public Equities (PIPEs)	For publicly traded companies with an average weekly volume of at least $50,000, Stag Financial can arrange for an equity line of credit (also commonly referred to as a Private Investment in Public Securities or "PIPEs"). An equity line of credit is an agreement between a public company and a funding source that agrees to purchase a specified dollar amount of securities over time under specified terms and conditions in a series of draw-downs. Funding from an equity line of credit can begin as soon as the underlying registration statement becomes effective with the Securities and Exchange Commission. Typical Raise: $2,500,000 - $10,000,000+
Debt Consolidation Lower Interest loans	Debt consolidation is often advisable in theory when someone is paying credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest. Visit http://www.bills.com - Consolidate Debt
Working Capital Loans, Business Loans and Merchant Cash Advances	Small businesses and merchants have may have difficulties securing working capital to grow and expand their businesses. Several programs are available to help provide working capital based on loan requirements or future receivables for merchant cash advance financing. Financing Amounts: $5,000 - $1,000,000+
Private Placement Offerings (PPOs), Direct Public Offerings (DPOs)	Stag Financial can structure and prepare a private placement offering (also known as a "PPO", "Direct Public Offering" or "DPO"). These offerings typically involve restricted securities sold under certain exemptions from registration. Private placements are often sold directly by the client's management and employees, hence the term Direct Public Offering. In some cases, a registered broker/dealer may act as an agent on behalf of the client and assist with the fund raising efforts. Typical private placements include Regulation D (Rules 504, 505 and 506), Regulation A, or Small Corporate Offering Registration (SCOR). Private placements are also a primary source of funding for most start-ups. Typical Raise: $25,000 - 1,000,000, but in some cases up to and over $5,000,000
Block Transactions and Stock Loans	For publicly traded companies that have had a liquid market for their securities for the past several months, Stag Financial works with several affiliates who can assist with structuring block transactions of the client's stock or creating loans using the client's stock as collateral. This financing tool is an excellent method for small companies to better manage their stock and insure large shareholders do not damage a viable trading market when they wish to sell a large block of stock. Typical Raise: 30 - 70% of the value of the block of stock
Bridge Funding	Depending on the client's underlying financial strength, Stag Financial may be able to arrange for a limited amount of bridge financing. This is typically an intermediate step between "going public" and raising capital through another fund raising method. Often times the bridge funding is either a small private placement or a short-term loan guaranteed by the client's receivables and/or assets. Typical Raise: $50,000 - $150,000+
Venture Capital	Although Stag Financial focuses primarily on the "going public" process, we do maintain relationships with several "late-stage" affiliate venture capital firms. If a client demonstrates fiscal responsibility, strong annual increases in revenue, solid future growth prospects, and is 6 - 12 months away from conducting a fully underwritten Initial Public Offering, Stag Financial can make the necessary introductions to secure venture capital funding. Stag Financial's affiliate venture capital firms currently are not funding start-ups or development stage corporations. Typical Raise: $2,000,000 - $10,000,000+

Additional Fund Raising Strategies

In addition to these commonplace fund raising strategies, Stag Financial has developed other proprietary methods of raising funds and enhancing shareholder values in client's public companies. A Stag Financial representative can assist prospective clients with whether any of these alternative and proprietary fund raising methods would be appropriate.

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