Section 3(a)(10) Fairness Hearings provide innovative financing for micro-cap public companies
San Francisco (PRWEB) July 31, 2013
Ironridge Global Partners, LLC, an institutional investor making direct equity investments in micro-cap public companies, announced it has closed fifty LIFE™ (Liability For Equity) transactions in three years. This innovative financing structure pioneered and developed by Ironridge Global utilizes a Section 3(a)(10) Fairness Hearing procedure or Section 3(a)(9) exchange to finance emerging growth companies.
Ironridge Global Partners successfully effectuated its 50th LIFE deal last week, allowing a consumer products company to pay for over $2.5 million in inventory with unregistered common shares, eliminating the issuer's out of pocket cost of goods sold, and significantly increasing free cash flow. The next day, the fund closed another $2.5 million deal for another micro-cap company, allowing its vendors to be paid in full in cash by Ironridge Global.
"Ironridge Global's LIFE program allows micro-cap companies to pay for inventory and acquisitions, satisfy trade payables and other debts, in exchange for unregistered common stock utilizing the registration exemptions provided by Section 3(a)(10) of the Securities Act of 1933," commented Managing Director John C. Kirkland. Ironridge Global Partners is the industry leader in this innovative financing structure, which substantially increases growth capital availability, and improves the balance sheet by decreasing debt and increasing equity, while at the same time reducing the transactional costs and time necessary to complete a financing.
Ironridge Global Partners is also a thought leader in legal compliance for micro-cap public financings in general, and Section 3(a)(10) fairness hearings in particular. LIFE transactions have very specific legal requirements: only bona fide outstanding securities, claims or property interests are eligible, and only if designated requirements are met and proper procedures followed. Proper regulatory compliance is crucial to ensure applicability of the exemption, and protect issuers and their boards from exposure. To ensure full compliance, Ironridge Global files all necessary disclosures with the SEC for its LIFE transactions.
The unique structure of the LIFE investment created by the Ironridge team is innovative, proprietary and regulatory-compliant. Ironridge Global Partners has an unparalleled track record for successfully completing Liability for Equity transactions.
About Ironridge Global Partners®
Ironridge Global Partners, LLC is an institutional investor, making direct equity investments in micro-cap public companies. Its Liability for Equity (LIFE™) program allows public companies to satisfy trade payables, debts and other liabilities in exchange for unregistered common stock utilizing a Section 3(a)(10) fairness hearing. Ironridge Global is the industry leader in this innovative financing structure, which substantially reduces the transactional costs and time necessary to complete a deal. The fund has entered into more than 50 equity financing transactions since 2011, ranging from under a quarter million to over $15 million each. Ironridge Global seeks to be a long-term financial partner, assisting public companies in financing growth and expansion by supplying innovative funding solutions and flexible capital. For more information on Ironridge Global Partners, please visit http://www.IronridgeGlobal.com.
John C. Kirkland
Ironridge Global Partners, LLC