by David Sinclair

OFEX

The OFEX market is a London-based market that allows trading in the shares of unquoted companies, and provides a transparent facility for the trading of equities both through brokers and related online facilities. It is regulated by the SFA.
Benefits to non-US companies include:

• European junior "stockmarket" quote
• Ability to raise money
• Enhanced business profile
• Low costs (approximately £70,000 plus percentage of funds raised)

OFEX is seen as a junior market to the London Stock Exchange and AIM, but it still enables companies to raise funds from the public (typically between £200,000 to £2m). Companies that do not require additional capital can join OFEX through an introduction, thus providing a primary European-based trading facility for its shares or a secondary trading facility in addition to an existing quote on the Israeli, or other non-US, Stock Market.
For companies at an early stage of development with intentions to float on a senior stock market in the future, OFEX provides valuable experience of the requirements and expectations of being a public company.
Further information on OFEX may be obtained from their website or from David Sinclair, FCA.

ADRs

What is an ADR?
Only companies quoted on exchanges can have ADRs. Companies with shares trading, for example, on the Tel Aviv Stock Exchange (TASE), OFEX, NeurMarkt, or other non-US exchanges can issue ADRs.
A private company can be introduced to OFEX or raise money on OFEX. Thereafter, the OFEX facility will enable the company to obtain a facility to issue ADRs, and thus have a USA stock market presence at minimal cost and with ease of compliance.

Axiom Capital is an independent corporate finance house, located in London, and authorized by the Financial Services Authority. The team, led by David Sinclair and David Coffman, focus on advisory services to small and medium size public and private companies, assisting clients through a combination of financial, strategic, and commercial advice. Transactions have included OFEX flotations, reverse takeovers, mergers and acquisitions and international strategic alliances. Contact David Sinclair, FCA.