The Perfect Corporate Board: A Handbook for Mastering the Unique Challenges of Small-Cap Companies

CHAPTER 6AVOIDING COMMON POSTFINANCING MISTAKES

Common Postfinancing Mistakes

Key considerations for directors:

• Many small-cap financings don’t end when the documents are signed.

• Directors might need to supervise how financings are communicated to investors.

• Directors need to ensure that processes are in place to administer financings postclosing.

Common mistakes to avoid:

• Especially with financings, small-cap companies often pay insufficient attention to the type of audience reading the press releases.

• Trying to “hide” dilutive financings in Form 8-K filings is a strategy more directors should question.

• Too many small-cap directors have no idea which elements of a financing could result in penalties and how material those penalties ...