In these challenging economic times it is far easier to raise capital when you can demonstrate an “exit strategy” for investors.  Public companies can provide the exit strategy that investors seek.  Stock in a publicly traded company is something investors are familiar with and understand. Many OTCBB companies raise their initial round of capital through a PIPE (Private Investment of Public Equity).  It allows companies an alternative to the IPO as a means of going public while raising capital.  It is also a faster and more efficient way of raising capital.

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