65% of OTC Small/MicroCaps Plan to Raise Capital This Year
According to the OTC Markets’ small cap survey, 65% of respondents plan to raise capital this year. This is pretty understandable because most small public companies go public to access capital.
Of those that plan to raise capital, 83% plan to do so with a PiPE or other private placement. 92% of those that raised capital last year did so with a PiPE or other private placement.
Interestingly, many of these small public companies raise capital through private sources but remain optimistic about raising capital through more public sources.
While equity line financing (6.3%), shelf offerings (0.0%), follow-on/secondary offerings (4.7%) and Regulation A+ (1.6%) were relatively unpopular financing methods in the previous year, respondent plan to use these more public types of financing to raise capital this year.
Of those respondents that plan on raising capital, 14.1% plan do do so with equity line financing, 9.0% with a shelf offering, 14.1% with follow-on/secondary offerings, and 6.4% with Regulation A+.
One thing that might spur more public capital raises is the recent success of Reg A+ and its potential expansion to SEC fully reporting companies.
Learn more HERE.