Q What is the timeline for the initial investment and going public?

A We are usually able to make an initial investment decision within 30 days of receiving full due diligence information. It typically takes 90-120 days to prepare a Keating Capital portfolio company to go public.

Q Does a company go public through a traditional IPO?

A The company goes public by means of filing a registration statement with the SEC, voluntarily electing to become a public reporting company.

Q What does it cost to go public?

A A typical cost for our portfolio companies is $500,000. Keating Capital requires an upfront non-refundable due diligence fee of $25,000. Our initial investment will typically cover the retainers associated with legal, accounting and CFO executive search. The balance of the costs can typically be paid from the follow-on equity investment.

Q What is the annual cost of being public?

A A typical cost for our portfolio companies is $750,000. The ongoing expenses of being a public company vary widely depending on a variety of facts and circumstances.

Q How do you value a company?

A We typically use public company comparables as the starting point for our valuation analysis. As necessary, we will look at recent M&A transactions or perform a discounted cash flow to augment our valuation analysis.

Q Where does a company initially trade?

A Generally, on the Over-the-Counter Bulletin Board.

Q How long does it take to upgrade to the NASDAQ Capital Market?

A Once a Keating Capital portfolio company has 300 round lot shareholders, it typically meets all of the NASDAQ listing requirements. Our historical experience has been that it generally takes about six months after initial trading to upgrade to NASDAQ.