The Center of Innovation Technology (CIT) helps private companies go public through a straightforward and valuable process called a Spin-off. CIT reviews each private company listed on the Technology Trading Floor, offering those who qualify a flexible and cost effective plan for going public.

What Is A Spin-off?

A Spin-off can be a public company. It can trade over-the-counter (OTC), if it doesn’t qualify to trade on a stock exchange. A private company wishing to go public through a Spin-off will require a public company for the process. This public company will then distribute shares of the private company to their shareholders and create a spin-off entity for the process.

General costing for an Initial Public Offering (IPO) can be more than $1,000,000 USD and in most cases takes more then a year to complete. For a private operating company this can be very prohibitive. The Spin-off option proves very beneficial to private companies, saving time and money to go public.

Benefits Of Going Public

• Raising capital can be easier because of the added liquidity for the investors.

• Public companies can easily convert stock to cash.

• When selling a company, a share sale price is usually greater than a sale price based on a company’s balance sheet. The sale price of a public company is generally the company’s share price multiplied by the number of issued shares.

• Public companies can enjoy substantially higher valuations than private companies.

• Public companies can use their stock to buy corporate assets.

• Making acquisitions with public stock is easier and less expensive.