There are several other areas of concern that US investors must address when investing in foreign companies. This can include but not limited to release of funds from escrow in traunches based upon the company’s use of proceeds. Other conditions usually contain a provision for Officers and Directors shares to be held in escrow until certain milestones have been met and a “make good” clause that is based upon the company hitting their projected pretax profit for the next twelve months. These types of terms and conditions are unique to US investment in a foreign company listed on the OTCBB. However, when implemented properly, these safeguards tend to limit the downside risk and protect US investors.

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