Corporate Law Assignment Written 8

User Generated

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Business Finance

Southwestern College

Description

Your firm's client Don Jameson, the aspiring music producer and CEO of Old Money Entertainment (OME), has been expanding the business quite well since he incorporated. OME now has six shareholders and its capitalization is $100 million. OME just signed a young, up and coming singer/songwriter/dancer who is widely believed to be "the next Michael Jackson." Don Jameson owns 55% of the stock in OME; the other 45% of the stock is split among the other five shareholders, who own 9% each.

Don would like to take the company public so he can both cash out some of his investment and gain additional capital for the business to expand. Your managing partner has asked you to perform legal research to ascertain (1) What OME would need to do to go public on the NASDAQ and (2) what provisions would apply to protect the interests of existing shareholders.


Explanation & Answer:
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Explanation & Answer

Attached.

OLD MONEY ENTERTAINMENT

1

Old Money Entertainment
Name
Institution
Date

OLD MONEY ENTERTAINMENT

2
Memo

To

: Managing Partner

From : Legal Officer
Date

: 25th August, 2019

RE

: How to List as NASDAQ and how to Protect the Interests of Existing Shareholders
Often, businesses need funds to expand and improve their operations as well as to

compete effectively in the market. There are different ways through which such businesses can
raise the required funds, including loans from banks as well as contributions from shareholders.
However, when the funds required are significantly based on the business need, the business can
raise funds from the public by listing at the stock market and selling its shares to interested
buyers. In the current case, the CEO of Old Money Entertainment (OME) has been expanding
the business after it was incorporated and currently has six shareholders and a capitalization of
$100 million. While the CEO owns 55% of the shares, the other 45% is split among the other
five shareholders, each holding 9%. Don is faced with the need for expanding the business and
need to raise additional capital by having the company listed at the National Association of
Securities Dealers Automated Quotations (NASDAQ) system.
The National Association of Securities Dealers Automated Quotations (NASDAQ) is an
online stock market that facilitates the sale and purchase of securities for listed firms to the
pu...


Anonymous
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