We at Konzortia Capital are thrilled to announce there are incredible things going on with the company! Our detailed business plan and financial model have been attracting the interest of many different financial players, and we have been discussing the many courses of action that have been presented to us as a result of our ongoing effort to make this company the virtual platform for the entire industry to operate.
We have been approached by a financial group that specializes in Mergers & Acquisitions. After they reviewed our business plan and financial model and found it truly impressive, we started having some serious conversations about taking Konzortia Capital public. A public offering could increase the value of our company. However, an IPO process is a time-consuming effort that can take more than a year and is fairly expensive. As our aim is to give our investors an exit strategy by 2021, we are analyzing the possibility of undergoing a reverse merger.
A reverse merger is the process by which a private company merges with a public company and becomes public in the process. The purchased company must be a shell company, with no liabilities and no assets, and listed in a given stock market, so that the resulting company is the same company that was private before the process started. A reverse merger can be much faster than a regular IPO, and it cuts many costs as well.
The process of a reverse merger would give our investors the possibility to liquidate their assets and increase the trading price of the company’s stock, as public companies rely on market sentiment and are usually valued at a higher trading price than private ones. In addition, a reverse merger would allow us to raise capital as well. The financial company that structures the reverse merger will sell a portion of shares to institutional investors at a discounted price. This way, we could get funded through a PIPE (Private Investment in Public Equity) transaction.
Rest assured, this process won’t affect our strategy, but the opposite: it has the potential to speed up the capital-raising process. In addition to being featured on OnePager VC and being on the verge of launching a campaign on Fundable as well, we have been introduced to an exclusive private equity platform that hosts ultra-wealthy investor from the UAE, Russia and several EU countries. Approval for this platform is imminent, and we are convinced we will be in conversations with these investors shortly. These are investors with incredible amounts of capital, so the minimum investment per the platform’s requirement is $1 million.
It is quite possible that we finish the current financial round alone in that platform, and we move on to Series A by the end of the year, a round with a capital sum that could potentially be met in a similar manner.
We are very optimistic for the future, and we believe Konzortia Capital will be thriving at extraordinary rates earlier than we had predicted! We will continue to keep you up to date with every new development that the company experiences.
If you don’t want to miss this incredible opportunity and would like to be a part of Konzortia Capital, visit www.konzortia.capital and leave your contact information so that one of our Investor Relations Specialists can reach out to you and provide any information you may need.