WE HAVE been in the wellness and spa business for the past eight years and would like to find out more about Over-the-Counter (OTC) Capital. Is there a cap on the amount of funds we can raise through OTC Capital?

If you are thinking about raising huge funds, you can do so through an initial public offering. But there is a cost-effective alternative: OTC Capital. It allows companies to raise up to $5 million in 12 months without a prospectus.

A private equity market for unlisted companies, OTC Capital attracts private investors such as individual investors, venture capitalists and private firms. Anyone or any firm may register to invest with the OTC Capital operator, Phillip Securities.

To sell shares on OTC Capital, your company should have a high growth potential, a strong management team, committed strategic investors and a market capitalisation below $20 million.

It must also meet these requirements:

- have a public company structure

- the auditors must not have had major issues with its financial statements for the past three years or its entire history if it was established less than three years ago

- be incorporated and based in Singapore

- have management, directors and controlling shareholders that are of sound integrity and character, and have adequate experience and qualifications

- satisfy the OTC Capital rules

- have a corporate adviser to prepare submission for admission to OTC Capital and ensure adherence of OTC Capital rules and disclosures thereafter

- have the services of a market maker, a firm willing to buy and sell the shares

- have a few investors lined up

- have a viable business model with good growth prospects

More information can be found on the OTC Capital website www.otccapital.com

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