Corporate Restructuring Case Study

A small public company had become stagnate and was faced with losing its public listing.

Problem:

The Founder and CEO of the Company had made bad decisions in the course of two years of operations due to his inexperience in the public market. Share price was down to pennies and financing of the Company was impossible due to the corporate structure. Management, shareholders, and stakeholders were at odds to a solution to turn the Company around. Microcap Advisors was contacted by the CEO and a major stakeholder to review the situation and offer recommendations.

Microcap Advisors Involvement:

Microcap Advisors did an initial assessment after reviewing the public filings, current shareholder list, and corporate structure including; articles of incorporation, bylaws and resolutions passed by the Board of Directors. Microcap also reviewed the financials of the Company, including all major contracts, liabilities, and debt. The business was solid and on the verge of generating revenue but needed financing to continue operations past the short term.

Microcap Advisors Solution

After an analysis, assessment and review of the Company by Microcap Advisors, resulting in a corporate restructuring plan, the Board of Directors agreed to put it in place. In order to accomplish the restructuring Microcap Advisors was designated the lead and prepared all documents, resolutions and oversaw all filings while working with the Company's SEC attorney. Microcap Advisors became the liaison between management, major shareholders, and stakeholders.

Results

The Company was able to transition into the restructuring recommended by Microcap Advisors. As a result the Company rolled back its share structure, brought in new management, and clearly addressed the financial issues of the Company. Financing was achieved through new investors by a private placement. Microcap Advisors continued as an advisor to the Board of Directors.

Management - Microcap Advisors

About Microcap Advisors

Founded in 2013, Microcap Advisors has long been recognized for advising small companies in multiple industries to achieve success and growth. We specialize in strategic corporate development, financial analysis, and in-depth reporting of the processes that drive a business and allow our clients to make better, more informed strategic decisions in the areas important to them.

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Microcap Advisors's mission is to provide the highest quality service to its clients.

Business opportunities grow in size and complexity; advisory relationships are more important than ever and need to be based on trust and respect. We pride ourselves on our work ethic, ability to deliver, and our track record of successes.

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