Many companies filing IPOs to go public on the OTC Bulletin Board or OTC Markets using S-1 Registration Statements choose to include text or artwork inside the front and back cover pages of the prospectus.
Graphics are permitted in an S-1 Registration Statement, subject to certain best practices.
- Registrants should refer to Rule 304 of Regulation S-T to ensure that the graphics are in compliance;
- The graphic presentations must accurately represent their actual current business;
- Graphics must not depict products that do not exist or are not the Registrant’s actual products;
- Registrants cannot include testimonials or statistical data that are taken out of context; and
- Registrants should not identify specific customers that are not representative of the registrant’s overall customer base;
- Graphics should not use industry jargon or terms that are unfamiliar to the average investor;
- The graphic presentation should not include extensive narrative text that repeats information already contained in the Summary or Business Overview sections;
- Graphic presentations cannot be confusing or obscure other Prospectus disclosures, and
- No graphic presentation should give prominence to selected portions of the Registrant’s business or operations.
S-1 Attorney Offers No Cost Consultations to Discuss Going Public
Microcap companies and entrepreneurs seeking to go public on the OTCQB or OTCBB via S-1 Registration Statements can contact OTCMarkets securities attorney Matt Stout for a free consultation at (410) 429-7076 or firstname.lastname@example.org.