How To Raise Capital With A Deutsche Bourse Listing

Many people seeking to learn how to raise capital do not realise that a listing on the Deutsche Bourse is the The Fastest, Most Efficient, Least Burdensome, and Least Expensive Exchange Worldwide.

Read on to discover the Deutsche Bourse Expedited Direct Listing Process.

Did you know that the Deutsche Bourse is the World's Third Largest Exchange?

Only the NYSE and NASDAQ are larger, not the London Stock Exchange. The Deutsche Bourse provides:

1. A Global Presence

A) Germany, Luxembourg, Switzerland, Spain, Czech Republic, and USA (Locations);

B) Chicago, Dubai, Hong Kong, Lisbon, London, Moscow, New York, Paris, Singapore, and Tokyo(Representative offices)

2. An Xetra fully electronic pan-European trading platform- one of the largest fully electronic cash markets in the world.

3. Over 9,000 equity listings and over 43% of the listings on the Open Market segment are US Issuers.

4. The direct result is the current regulatory scheme, the most efficient and least burdensome in the world.

The Deutsche Bourse Regulatory Scheme:

1. Models the success of and compete with the AIM Market.

2. Kept the Nomad centralized regulatory oversight.

3. Eliminates the high initial cost of listing.

4. Eliminates the extensive reports like Long Form, Working Capital, etc.

5. Offers Limited Listing Partner liability.

6. Abridged Listing Partner compliance obligations.

7. Eliminate non-essentials, enabling 10 day process.

8. Allows the Issuer to determine the level of disclosure through selection of market segment.

Who Should List on the Deutsche Bourse?

1. Your company should have an ability to attract investor interest:

A) Established growth revenue and business model.

B) Hot industry.

2. Shareholders seek a Net Asset Value.

A) Establish valuation prior IPO elsewhere.

B) Expand geography of investor base.

What to Expect From a Deutsche Bourse listing:

- Speed= Fastest listing process globally.

- Economics= Least expensive listing process globally.

- No Burden= Minimal on-going maintenance requirements.

The Deutsche Bourse Listing Process:

- The FMS Group Approval.

' Financial statements and annual report (business plan).

' Minimum paid-in capital of ?250,000.

- Cost of a Deutsche Bourse listing:

' ?20,000 Deposit, costs not to exceed ?50,000.

' May not include cost of legal work related to financing.

- Time:

' Can be < 30 days assuming Company responds.

Maintenance of a Deutsche Bourse listing:

- Annual audited financial statements

' Within 6 months of fiscal year end

- Semi-annual unaudited financial statement

' Within 3 months of half-year end

-Material corporate developments posted on website

- Annual Fees

- Listing Sponsor= ?20,000 annual supervision fee

- Clearing Agent- ~ ?5,000 annual fees

- Exchange- ?2,500

- No other requirements!!

Dual Listing:

- Company can apply for dual listing/IPO on any other exchange at any time.

- Deutsche Bourse listing can be maintained or terminated upon the subsequent listing at the option of the Company and its underwriter.

Valuation:

- Initial valuation determined by Company/Investors at time of listing and approved by Listing Sponsor

- Valuation can be comparable to companies in the same sector and region

- Smart Companies set valuation to encourage liquidity providers

Liquidity Basics:

- Liquidity is driven by CORPORATE PROGRESS TOWARDS LARGE MARKET CAPS

- Liquidity means stock buyers

- Stock price should be below fair value to give investors a reason to buy the stock

- Announced corporate progress is the key determinant

- Selling must be controlled by locking up existing shareholders

- Stock can be sold at the request of shareholder as long as Company controls the right to sell and presumably can place with counter party

Liquidity First Step:

- First target group is people who already know the company

- Friends of friends (social networks)

- Passing the word the company stock is available and prospects are hot

- Results often surprising due to effect of social networks

Liquidity Second Step:

- Second target group is people who should know the company

- Investors in competitive companies

- Focus on key influencers

- Focus on cross-border and cross-regional investment groups

Liquidity Third Step:

- Third target groups are momentum and opportunistic investors

- Establishment of first two target groups

- Focus on key influencers

- Focus on cross-border and cross-regional investment groups

Liquidity:

- Which stock would you buy?

- How much convincing do you need for each one?

- Price your issue to create an incentive for liquidity providers!