Over the last 16 years, JMJ Financial has funded many issuers who have made their way to national exchanges. In fact, we’ve carved out a niche providing bridge financing for these companies, working closely with their investment banks and service providers. In doing so, we’ve found that every case is unique, chock full of its own challenges and opportunities. Identifying these and keeping your eyes on the prize by creating a plan to address the issues and achieve milestones is a key component of success.
Beyond meeting the specific exchange listing requirements, you won’t find 100% consensus on much more. How attractive is your industry and company to institutional investors? Is your management team and board acceptable? How much revenue or growth do you need? How important is IP? Do liabilities need to be addressed? Are your strengths enough or do you need to address weaknesses, and if so, which ones? Here are some pointers we’ve learned over the years:
It’s never too early to plan. Even if an uplist seems a long way down the road, getting feedback from savvy investors, advisors and investment banks can help answer the questions above. At JMJ, we leverage our in-depth relationships with many of the top banks and service providers to introduce companies, help create a plan and timeline and provide interim financing if necessary.
It takes time and money. From regulatory approvals to legal fees to unforeseen issues, everywhere you look there are costs and delays involved. Understanding what those might be and having contingency plans and available funding if (when) they occur can lead to a successful uplist.
Pick the right team. Banks and service providers can make or break your deal, and if necessary we can recommend service providers and consultants that focus on the uplisting process and have strong relationships with exchange personnel. And remember that your lenders are a key part of the team as well.
Pick the right money. Be sure to work with lenders who understand the process and already work closely with our uplist team or who can help you put it together. Also make sure your lender has a strong capital base, will continue funding throughout the journey and whose terms won’t wind up being roadblocks down the road.
At JMJ, we’ve averaged over 3 investments in our portfolio companies over time, offering a range of debt and equity structures for issuers in every stage of development. We know what it takes to uplist and have worked with investment banks to develop unique financing structures that can keep companies liquid throughout the process. Give us a call today and we’ll be happy to give you honest feedback and see if we can help.