An emerging growth company (the “Company”) has decided to raise equity capital through an Initial Public Offering or IPO. The Company proceeds through the registration process with the Securities and Exchange Commission (the “SEC”) for offering the sale of their common shares of stock directly to the public. This is also called a Direct Public Offering or DPO.

Concurrently, the Company has retained ePO to provide its turnkey technology solution so they can offer their IPO shares online and directly to the ePO database of investors (Members) after the shares are approved for sale by the SEC.
The SEC has approved the sale of Company’s IPO shares.

The Company then notifies ePO Members via email that their IPO shares are available for review.

Members are directed to the Company’s online site. Each Member carefully reviews the Prospectus of the Company and decides if they want to bid on the IPO shares that are being offered.

Members who decide to participate in the IPO will fill out the Subscription Agreement to purchase the Company’s stock.

Members will decide how much money they want to invest and how much they want to bid for the stock. (ie: $10,000 invested – bid $10 per share)
Members complete the e-check form to submit their money electronically to the Escrow Company. Each Member receives an electronic confirmation. All monies are held in Escrow at Wells Fargo Bank Corporate Escrow until the IPO offering of the securities is completed.

The bids are all tallied and Members with the winning bids are contacted. If a Member has a winning bid but the Company has decided to accept a lower offering price to complete its IPO, then the Member will receive the lower price of the stock. The amount of shares the Member receives will be determined by the amount they invested divided by the offering price of the stock.

(ie: $10,000 invested divided by the offering price of $8 per share = 1,250 shares)

The losing bidders are also notified and there money is immediately returned to them.

The winning Members information is sent to the Stock Transfer Agent. The Stock Transfer Agent delivers the stock certificates to the Members home address or stock brokerage account.

After the Stock certificates are distributed the Company’s stock starts to trade either the American Stock Exchange or the NASDAQ small cap stock exchange.