1) Why are APO’s not well known outside of the USA?

One of the reasons that APO’s are not well known is because the current Israeli marketplace ‘does not’ allow for this knowledge to be commonplace. Think about it: if, with an APO you are paying only one-third of the normal “IPO” fees and it is taking you less than six months to finish the whole process from A to Z, you are too small-time for most of the international firms in Israel. Another reason is that OTCBB is relatively new to the marketplace -- only a decade in operation.

Yet, OTCBB is not an exclusively American old-boys ‘club.’ There are numerous European and Asian companies listed.

2) How do I know if my company is ready to go public?

Sometimes the great need for a major influx of cash pushes companies into positions they should not be. Since Spark’s fees are based on your company’s success, we have a vested interest in determining whether or not you should be going public at all.

Based on our proprietary benchmark system, we only nurture clients that possess the essential ingredients for a successful float. Our teams of experts review your financial picture, technology and scientific base, look at your management and marketing teams, and analyze your long-term plans and competitors. Once you pass this first stage, we consider which vehicle may work best for you, engage you in extensive long-term and short-term planning and begin to line up the teams of experts that can meet your needs most effectively.

3) Is it true that IPO’s are a guaranteed vehicle for raising investment capital?

Most people don't realize that an IPO is actually two transactions that occur simultaneously. One is registering stock with the SEC and two is having a brokerage company undertake selling the stock to the public. So, there’s no guarantee that the IPO will generate the kind of money you are anticipating.

APO’s, while not risk-free, are significantly less risky than IPO’s. There are no guarantees for anything in life, but with our system we try to keep the risks minimialized as much as possible. For your sake and our’s. After all, if you’re successful, so are we.

4) Isn’t the OTCBB terribly small?

Keeping in mind that the OTCBB is but one decade old, surprisingly and impressively, there are 4,100 plus companies actively trading there. Among those who started on the OTCBB are Warren Buffet’s Berkshire Hathaway, Turner Broadcasting System, Occidental Petroleum and many others. So, in our opinion, you are in ‘good company.’

5) Who are the heavy investors on the OTCBB?

A large portion are institutional investors. That’s one of the reasons that, while we can’t promise that a stock float will be successful, we do have a very good idea of how much we can generate in any single float. In most cases, the institutional investors are looking to invest but a small percentage of the total portfolio under their management on the OTCBB. But remember, their ‘small’ percentage can translate into a good many investment dollars for your company.

7) Isn’t there a low trading volume problem at the OTCBB?

Trading volume, like any other market factor, separates the chaff from the wheat. The record shows that companies who exhibit strong potential and have been listed by the fast track process, have succeeded in attracting pipe funding from institutional funds. Generally speaking, an investment by a private equity fund indicates that: (i) the company has improved its financial position; (ii) savvy investors believe in the company’s future; and (iii) now’s the chance to get in on the ground floor while the stock is still undervalued.

Companies listed on the OTCBB generally enjoy a long “honeymoon” period in the marketplace, as reflected in the stock’s price and trading volume.

8) Is it true that the OTCBB has not enjoyed a completely sterling reputation?

The OTCBB was founded in 1997. They are newcomers compared to their veteran counterparts (in Israel, too.) That means that they have had a relatively shorter period of time to enable the system to work smoothly. It is also true that, initially, the OTCBB’s requirements were lax; not all companies listed should have been. However, as of Dec. 31, 2007, regulations were completely revamped, and made more stringent. While one can not guarantee that, perhaps, one or two less viable companies may slip through, the bar has been significantly ratchetted up making it that much more difficult for them to do so.