Termination of IR Service Agreement

Certivitude IR regrets to inform that the relationship between Homescape, LLC DBA Cervitude IR and REAC Group, LLC has been severed on July 6, 2017 due to REAC Group, LLC in our view breaching the services contract that we had signed the month prior.

This serves as official notice that any investor relation work or advertisements that has been done on or after July 6, 2017 were not done by Cervitude IR.  Any questions please contact Cervitude IR’s client representative Daniel Wachtel at 646-493-6402.

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Posted in Dealmakers

Small Cap Executives & Penny Stock CEOs: STOP LOOKING AT YOUR STOCK PRICE!!

From Bezos to Buffet; the best CEO’s don’t care about their stock price.  The best CEO’s care about building a profitable business.  They spend their time building a great team that can run a profitable business.  They understand that if you build a great business that produces cash; investors will beg to buy the stock.

Be a great CEO.

– Encouragement from the Cervitude IR Team.

Posted in Investor Relations, Micro Cap Investor Relations, Penny Stock Investor Relations, Small Cap Investor Relations | Tagged , , ,

REAC Group Inc. (Ticker: REAC) Retains Cervitude IR for Investor Relations & Human Resource Development

Today, Cervitude Intelligent Relations entered into a 6 month retainer to consult on business growth, capital formation and investor relations functions for Pittsburgh based REAC Group Inc.

The company, which currently trades under the stock ticker “REAC” on the OTCMarkets Inc. exchange, is a real estate focused company seeking pivots in its’ business model.  At it’s core, the company seeks to bring additional value to its shareholders with the possibilities to Acquire, Joint Venture or Partner with other real estate, energy, and agricultural companies.

At Cervitude IR, we take a long term approach to the success of our clients.  Our background in the capital markets along with our consultants consistently and persistently generating solutions for business growth and striving to add value; lead to a multiplying effect for all stakeholders.

The project leads for Cervitude IR include Mr. Nicholas Coriano & Mr. Dan Wachtel combined with REAC Group, Inc. CEO Robert DeAngelis.  Together the team comprises of over 50 years of business experience.

Questions about investor relations or potential partnerships with REAC Group Inc. should contact Dan Wachtel by clicking here.  Visit REAC Group, Inc.’s website by clicking here.

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Posted in Client Announcements, Investor Relations | Tagged , , ,

Why The VC & Investor World Currently Prefer Limited Partnerships

Venture Capital firms and private investors have commonly used Limited Partnerships (LP, L.P. or LPs) to secure their interest in their investments.  Commonly this can throw novice founders or over-educated executives for a loop.

A general partnership is easy to form.  If two or more person associate as co-owners a business for profit and take no steps to further formalize their agreement, their is a partnership.  Meaning; partnerships are easily formed.

Traditional routes of issuing stock or warrants complicate matters for future investors as well as internal book keeping.  In addition, issuing stock sometimes has tax consequences on the company and the person receiving the stock.

In comes the limited partnership.  In a Limited Partnership an agreement is made between the general partner (the one managing the partnership) and limited partners (those that have passively invested).  Limited Partnerships, unlike many stock transfers or sale of securities generally do not have to be registered with any governmental agency.  This allows venture capital firms and investors to structure creative deals without altering market capitalization, at least in the short run, if they so choose.

The LP is also a powerful tool when raising capital.  Since no requirements for filing in States or local governments are necessary for LPs, they can begin to seek interest by selling Partnership Interests to Limited Partners without registering the company.  Many firms start capital raises in this manner and then convert the Partnership into an LLC or Inc. for further liability protection.  While the limited partners generally are not held liable for the actions of the general partner, if the courts determine that a limited partner was in control, liability may ensue.

Partnerships in general are controlled by Partnership Agreements.   Limited Partnerships in general are controlled by Limited Partnership Agreements.  These are simply agreements devised and agreed upon by the partners/limited partners.

In the absence of any of these agreements, in the United States, the Uniform Partnership Act (UPA) established rules of law that control the relationship between the parties of the partnership.  The UPA spells out the definition of a partnership as well as “When Property is Partnership Property” (UPA Section 204), Partner’s Liability (UPA Section 306) and Partner’s Rights & Duties (UPA Section 401).

If you are in need of assistance navigating or developing Limited Partnership Agreements or Partnership Agreements in general; contact us today.

 

Posted in Dealmakers, Investor Relations, Reverse Mergers | Tagged , , , ,

The Next Big Thing Is Already Here: The Internet and The Internet of Things

Leaders, CEOs, Innovators and Small & Large Companies alike are always looking to stay ahead of the curve.  They are always looking for the next big thing.  They are always looking around the corner to see the future.  But at last, the future is here.

The Internet has been by far deemed to be the greatest innovation of the past decades.

The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link devices worldwide.

Starting in the 1960’s the federal government’s research empowered agents to build robust, fault-tolerant communication via computer networks.[1]  This was the first the world saw of the Internet.

Now in an age where everyone in the developed world has access to super computers via cellular phones it may seem that the world is due for another great innovation.  Some are looking to virtual reality and artificial intelligence but ignore that these new technologies are contingent on the Internet.

Similar, enters the term The Internet of Things.  The term refers to the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.[2]

internet of things

This connection between everyday objects and the internet are already changing the way people live, do business, research and interact with each other.  Now, your smart phone can close the garage door or start the coffee machine.

“Smart homes filled with connected products are loaded with possibilities to make our lives easier, more convenient, and more comfortable. Imagine that you’re driving home on a hot summer day. But rather than turn the air conditioner on when you get home and wait for your house to cool, you simply use your smartphone when you leave your office to tell your smart thermostat to lower the temperature.”[3]

So is The Internet of Things the next big thing.  Well, it’s not next…its now!  And we don’t even have to go that far to change the world.

History has shown that older technologies, even just marginally older technologies can impact developing nations greatly.  Before the birth of America as we know it, the cotton loom design and patent was stolen from England and birthed an industrial revolution in the United States.[4]

While theft is not the issue, transferring older technology to developing nations still has benefits.  Africa for example has benefited greatly from the “ancient” American technology of analog phones.  While 6g technology is the norm in America, Kenyan startup BRCK, which makes the  BRCK wifi device, secured $3 million in funding from supporters Jean and Steve Case and the Ted Organization, as covered by CNN. The BRCK solar-powered gadget provides 4G internet and electricity for up to 20 connections.[5]

So why wait for the next emerging thing when we are at the infancy of the internet era.[6]   Social Media celebrities are making millions from Instagram accounts and bloggers are earning six figures.[7]  Meanwhile large corporations are struggling to leverage ecommerce[8] or social media[9] to increase profits. Are they looking for the next big thing?  Or are they just not focused on what is right in front of them?

It may be that corporations simply need to work on the technologies available and perfect how they can scale their businesses with existing technologies.  The data and case studies available can help these corporation move into the future with more certainty than in the past.  The future, the next big thing, is already here.  Is your business using it correctly?

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[1] IPTO — Information Processing Techniques Office. http://www.livinginternet.com/i/ii_ipto.htm

[2] https://en.wikipedia.org/wiki/Internet_of_things

[3] How IoT & smart home automation will change the way we live http://www.businessinsider.com/internet-of-things-smart-home-automation-2016-8

[4] We Were Pirates, Too http://foreignpolicy.com/2012/12/06/we-were-pirates-too/

[5] Watching Technology Trends Emerge In Africa https://techcrunch.com/2016/02/03/watching-technology-trends-emerge-in-africa/

[6] The Internet is in its Infancy 2016 https://www.linkedin.com/pulse/internet-its-infancy-michael-chase

[7] How to earn a SIX-FIGURE salary from a blog: Top writers reveal the tricks to cashing in on your hobby – and turning it into a high-flying career http://www.dailymail.co.uk/femail/article-3780371/How-earn-SIX-FIGURE-salary-blog.html

[8] Retailers Struggle Getting E-Commerce Goods to Customers, Study Says https://www.wsj.com/articles/retailers-struggle-getting-e-commerce-goods-to-customers-study-says-1446634802

[9] Social-Media Companies Forced to Confront Misinformation and Harassment https://www.wsj.com/articles/social-media-companies-forced-to-confront-misinformation-and-harassment-1479218402

Posted in IOT | Tagged , , ,

The Right Business Plan Writer Can Enhance Your Business

Putting together a business plan for any venture is a cumbersome process.  Details that don’t make it into a business plan can make or break a ventures’ chance of getting funded or attracting the right investors.  In some cases, a solid business plan can be the deciding factor of whether or not someone or some business will gain access or citizenship into the United States (such as the case with investor visa business plans like the business plan for the E2 Visa).

The right business plan writer will do more than put together a business plan, they will consult the best ways to launch or grow a business and put into place business plan tactics that will improve the chances of your business plan’s objectives.  Understanding the objectives of a business plan is critical to how well a business plan writer will be able to tailor your business plan to your audience, regardless of whether it is a group of investors, close friends, internal management or the immigration office of the USA.

Some questions you should consider asking a potential business plan writer include:

  • Have you ever written a business plan like this one?
  • How many business plans have you written?
  • Are you familiar with the business sector or industry I need a business plan written for?
  • What sections are included in the business plan you put together?
  • Do you meet the guidelines for a particular business plan? (In some cases, agencies or investors want specific items in the business plan).

An honest business plan writer will tell you that a business plan alone is not a silver bullet. In other words, simply putting together a business plan will not be the only deciding factor a person or agency will consider in funding a business or becoming a partner.  Even in the case of business plans presented to government organizations; there is always something else the organization wants in addition to your business plan.

For market research, you want to be sure that a business plan writer gives you an in-depth analysis to the market and industry that allows the reader to get a good idea of where that market or industry in trending. And of course, the cost of the business plan writer must be reasonable for it to be cost-effective.

Our process here at Cervitude is simple, we talk with a prospective client to get a good idea of what they are trying to accomplish with their business plan.  Once retained, we have an hour-long conference (sometimes shorter and sometimes longer) where we go over a questionnaire and get all the information needed to develop your business plan.  Once the questionnaire is completed with the client, the business plan is delivered in 7-14 days depending on the business plan package purchased.  Contact us today by calling or texting 203-685-0346 to discuss your business plan writing needs.

business-plan-writer

Posted in Business Plans | Tagged ,

Creating An Investor Awareness Campaign For Regulation A Crowdfunding & Small Cap Companies

Over the past 365 days the Securities and Exchange Commission has enacted Regulation A and Regulation A+. These regulations change the rules on how startup companies and businesses can raise capital via crowdfunding and online. The interesting thing about the new regulations for crowdfunding is that they are very similar to promoting and funding a smaller public company such as a penny stock, micro-cap company or small cap stock.

After my time at Merrill Lynch and the New York Stock Exchange I worked with a boutique investor relations firm being retained through Cervitude IR. In that time, I had a mentor and wall street veteran who described many of the OTC companies and NASDAQ penny stocks as “story stocks”. What he meant was that many of these companies had limited operating histories and had a better story to tell than they had financials. When the company issued a press release it was more pertinent (and definitely more interesting) to discuss the company’s management or the company’s future game plan than it was to discuss their operating cash flow or assets on their balance sheets (since many of them had none). This is mainly because there were limited operations in the company and the prospects, or story of the company, was more enticing and then the actual financial statements that the company released.

An investor awareness campaign is usually sought out by a company because they are looking to raise funds from investors. This means that they do not have funds or that they need more funds. Either way they are trying to entice prospective investors to buy into their companies. Startups and publicly traded smaller companies looking to achieve investor awareness and leverage that awareness to convert the readers or viewers into potential stockholders or investors should be trying to tell their story succinctly to potential investors. This includes penny stock promotions and what is sometimes called accredited investor outreach.  In comes the story….

The best way to attract potential investors is to tell your story in a fashion that relates to them. Regardless of whether you are a penny stock, micro-cap company, small cap stock or startup, the outline should be the same. A smart investor relations promotion or awareness campaign will tell your reader or viewer 6 things:

  • Who: This includes the management and name of the company in the investor relations or investor awareness campaign (this can be done in one press release or vide OR over a series of press distributions)….
  • What: What is it that the company is doing or plans to do…..
  • Where: Where is the company located or where is the company planning on competing…..
  • When: When is the stated event going to happen or when did the event happen……
  • Why: Why is this important to the reader?….
  • How: How is the company planning on capitalizing on the event or how is the company planning to proceed?….

All of these things will lead the reader or viewer to have a full picture of the story the company is trying to tell via their investor relations campaign or investor awareness campaign.

Regulation A or A+ crowdfunding efforts as well as penny stock and small cap companies should be aware that going public (via a reverse merger or listing OTC) or setting up a crowdfunding campaign on a crowdfunding website does not automatically bring in investors. Rather, this is the first step and investors must be notified that you are now public (or raising funds via a crowdfunding campaign).

Thinking that investors will come just because you are publicly traded or on a crowdfunding website is just plain WRONG! A strong marketing blitz and promotional efforts are required to bring attention to your story. And this promotion should end up on marketing material that tells an enticing story to prospective investors.

If you need help telling your story to potential investors, contact us today to discuss how we can help.  Contact us by clicking here.

-Nick

Posted in crowdfunding, Investor Relations, Micro Cap Investor Relations, Penny Stock Investor Relations, Small Cap Investor Relations | Tagged , , , ,

2017 MicroCap Conferences

The start of 2017 means the start of the micro cap conference calendar.  Every year a host of companies represent themselves in front of investors at micro cap conferences across the nation.  Here is a list of micro cap conferences being help in 2017

  • NobleCON13 annual small cap and emerging growth investor conference: Jan 29-31

https://nobleconference.com/noblecon13

  • SeeThruEquity Investor Conference: February 22, 2017 in South Beach, Miami

http://www.seethruequity.com/

  • 29th Annual Roth Conference : March 12-15 2017

http://www.roth.com/main/Page.aspx?PageID=7005

  • Sidoti & Company Micro Cap Conference : March 29th, 2017

http://www.sidoti.com/events/

  • The MicroCap Conference : April 2017

april-nyc-micro-cap-conference

  • Taglich Brothers Annual Investor Conference

http://www.taglichbrothers.com/conference.php

  • The Marcum Microcap Conference : June 15-16, 2017

Marcum-microcap-conference-presenting-sponsorship

  • 8th Annual Australian Microcap Investment Conference

http://www.cvent.com/events/8th-annual-australian-microcap-investment-conference/event-summary-b3af688df82a4293aeead47b1b4a52e6.aspx

  • Drexel Hamilton Emerging Growth Conference  : November 30, 2017

http://drexelhamilton.com/research/conferences/

  • LD Micro Microcap Conference : December 2017

http://www.ldmicro.com/events

This is just a sample list of conferences and not meant to be all inclusive.  These conferences are meant to connect micro cap companies with micro cap investors.  If you would like to attend any of these conferences or would like representation to attend these conferences on your behalf, contact us today.

Posted in Micro Cap Conference | Tagged

OTC & TSX Online & Social Media Investor Relations Timetable

Since inception our focus has been to cost-effectively bring investor awareness to smaller publicly traded companies otherwise known as nanocaps, microcaps or small cap companies and penny stocks.  While we offer traditional investor relation services we understand how online marketing and social media targeted IR campaigns are without a doubt disrupting how penny stocks and micro cap companies implementation of investor awesomeness programs.

Please note that the foregoing is a sample only and that services provided in the following sample IR timeline can be implemented as a package or individually. A sample timeline of how we schedule marketing efforts for online investor relations campaigns:

1) Initial Conference : We review by conference exactly what the company is and does and what story the company is looking to tell.  In this initial conference a timetable is established and set for content generation and dissemination.

2) Content Generation: This includes the pre-writing of press releases, twitter tweets, Facebook posts, LinkedIn posts, blog posts and advertisements for Google, Yahoo, Bing and other search engines.

3) Dissemination : This includes distributing press releases (per established timeline ), direct emails, social media posting and activating PPC advertisements.

Our Investor Relations Competitive Advantage 

There are over 3,500,000,000 people in the world with access to the internet.

Our social media and online investor relations campaigns are focused not just on reaching millions of people online, but reaching the right people online.  This means we target potential investors on which ever platform they may be on at any particular time.

online-marketing-social-media-investor-relations

For example, if the company seeking promotions is a gold mining company then pay-per-click ads will show when someone searches “gold mining companies” or “publicly traded gold mining companies” or “gold mining penny stocks”, Etc.  This means that we catch potential investors in front of the computer at the moment they are thinking about investing.  We can even limit the search to show your company only when the stock markets are open or when the stock markets are closed.  We can target investors with a very few limited keywords or a wide variety of keywords to capture larger audiences or very specific groups of people. This pay per click strategy in conjunction with our organic social media marketing allows us to reach people that are interested in companies like your company.

If traditional investor relations methods have not shown to be effective in your situation or you are looking to ramp up your investor relations efforts; then online marketing and social media investor relations may be the right fit for you or your client company. The world is changing and many investor relations companies continue to market penny stocks and micro cap companies to the same investor database that they marketed to over 5 years ago.  We are proud to be on the cutting edge of investor relations and understand that and investor relations budget must be effective in order for the penny stock or microcap stock to scale and grow and succeed. If you are looking for online investor relations or social media investor relations for your penny stock, small cap, or microcap stock, then give us a call or email us today.

Posted in Investor Relations, Micro Cap Investor Relations, Penny Stock Investor Relations, Small Cap Investor Relations | Tagged ,

How Investor Relations Affects Penny Stocks & Micro Cap Company Investors

Investing in penny stocks and microcap companies is inherently risk.  Common elements of microcap companies include trading over the counter, limited public information, limited liquidity and the risk of losing your entire investment.[1]

The S.E.C. has charged numerous “stock promoters” with pumping up a stock and then selling it in the middle of their promotions.

“Fraudsters who conduct stock promotions are often paid promoters or company insiders who stand to gain by selling their shares after creating a buying frenzy and pumping up the stock price.  The promoters or insiders make profits for themselves while creating losses for unsuspecting investors.”[2]

Investor relations is a function inherent in public companies but for smaller public companies like penny stocks and micro-cap companies, the line between marketing agency and investor relations agent is blurred.  Many investor relations agents offer traditional marketing for company clients including straight out advertising.  While many of these penny stocks and microcap companies are still looking to raise money to fund their businesses, the advertising done many of the times is of the company’s management, the company’s business plan and the fact that the company is a public.  While some promoters are more discreet about “touting” the fact that the company is public; others only promote the stock ticker (explicitly promoting the stock).

So, How Does Investor Relations Affects Penny Stocks & Micro Cap Company Investors?

There are a few ways.  In part, it depends on what the investor relations agency is doing to market the company to the public.  But some cause and effects of investor relations of penny stocks and microcap companies include:

  1. Investor relations agents that are focused on social media promotion will target a broad range of buyers world-wide. Even if the social media marketing is targeted many times the reach is global.  Depending on the traffic driven by the social media investor relations campaign, companies and investors can expect movement of the company’s stock due to sales and purchases driven by the impressions of the company’s name and story.
  2. Depending on how the investor relations agent has been compensated there may be downward pressure on the stock. Many penny stocks and microcap companies seek investor relations agents that will take stock as compensation.  This means the investor relations agents need to sell the stock in order to get paid.  On confidence that their investor relations and marketing efforts will be successful, investor relations agents do their best to market a company and sell out afterwards.  Keep in mind that investor relations agents that are selling the stock while they are promoting the stock will most likely be in violation of S.E.C. or Finra rules.  This also classically called “The Pump & Dump Scheme”. [3]
  3. In some cases, investor relations programs are mainly based offline. This includes the more traditional investor relations functions like Wall Street Roadshows or Microcap Conferences.  These investor relations campaigns introduce microcap companies directly to accredited investors or Wall Street investment firms.  Likewise, many investor relations agents are hired to reach out to their existing network of industry insiders to make introductions to the penny stock company’s management.  This can cause big outside investments in the penny stock or microcap stock and possibly lead to recapitalization.  Or even possibly a reverse merger or buyout.

The short story is that including more investment professionals in any organization will have some effect on the company as a whole.  In the practical application, when a penny stock or microcap company hires an investor relations firm, they are generally looking for investors and want the world to hear their story.  This will cause many ripple effects that investors should be aware of.


To discuss how Cervitude Intelligent Relations can serve your investor relations needs, contact us today.


 

[1] https://www.sec.gov/investor/pubs/microcapstock.htm

[2] https://www.sec.gov/oiea/investor-alerts-bulletins/ia_promotions.html

[3] https://www.sec.gov/answers/pumpdump.htm

Posted in Investor Relations, Micro Cap Investor Relations, Penny Stock Investor Relations, Small Cap Investor Relations | Tagged , ,