The Perfect Corporate Board: A Handbook for Mastering the Unique Challenges of Small-Cap Companies

CHAPTER 1START EVERY FINANCING WITH THE SAME THREE-STEP PROCESS

Three Steps to Start Every Financing

Key considerations for directors:

• Step one: Assessing of gating issues which can immediately impact a company’s financing plans.

• Step two: Determining how much capital the company should try to raise is part art and part science.

• Step three: The use of proceeds can impact what type of financing is possible.

Common mistakes to avoid:

• Boards often outsource or delay vetting the pertinent “gotchas” to the detriment of shareholders.

• Boards need to confirm that the counsel being used by management are qualified corporate finance lawyers.

• Boards need to focus more on what is “possible” and less on what is “needed.”

• Boards often fail to ...