DUBAI, UNITED ARAB EMIRATES - (NewMediaWire) - September 04, 2015 - Global Equity International, Inc. (OTCQB: GEQU) and its fully-owned subsidiary Global Equity Partners Plc., a specialist consultancy firm with offices located in Dubai and London, is pleased to announce to its shareholders that the Company intends to reapply for OTCQB listing status once the Company's closing bid consolidates at $0.01 or more.
The terms that the Company has to comply with in order to be readmitted on the OTCQB are as follows:
1. Must be SEC reporting, bank reporting, or listed on a qualified international stock exchange
2. Minimum bid price of $0.01
3. Companies not on OTCQB must meet an initial minimum bid price test of $0.01 as of the close of business for each of the last 30 calendar days
4. Companies may not be subject to bankruptcy or reorganization proceedings and must have an SEC registered Transfer Agent.
It is important to note that the Company currently complies with two out of the four OTCQB listing requirements (points 1 & 4) and once our bid price closes at $0.01 or better in the near future, we intend to submit our application to the OTCQB and pay the listing fees. The Company believes that up-listing back to the OTCQB will bring more sophisticated investors to the table, hence help to further consolidate the Company's share price.
The Company became a publically listed company by way of a Form 10 registration filed with SEC in early 2012. Our Form 10 became effective on June 21, 2012. The Company commenced trading on the OTCQB in October of 2012.
During 2014, the Company mistakenly agreed to take on a series of convertible loans that unfortunately lead to its common shares to be quoted under $.01 for more than 30 days; hence the Company was temporarily demoted to the Pink Sheets. Our current 52 week high and low price has been $0.37 and $0.009 respectively.
As stated in our June 30, 2015 10Q filing, on August 6, 2015, the Company finally managed to rid itself of all convertible debt and does not intend to take on any further convertible debt in the foreseeable future.
The Company's business model revolves around engaging with good quality private companies with strong business models and valuations that are seeking to list their shares on a recognized international stock exchange, be it in the U.S., London, Frankfurt or Dubai. We carry out extensive due diligence on our clients and then introduce them to many sources of Pre-IPO funding. Once our clients are funded, we then commence the process of taking our clients to market. It is our intent to list at least two of our clients on the US market and a further two clients on a foreign market in early 2016.
The Company is sector agnostic (except for gambling and the adult entertainment industry). Our wholly-owned subsidiary, Global Equity Partners Plc, currently has 20 clients and under contract where we can earn up to 10% cash success fees for the introduction of Pre-IPO funding, and up to a further 10% equity success fee once they are listed on a recognized international stock exchange. Our current clients have valuations between 10 million USD and 318 million USD and are currently seeking between 5 million USD and 138 million USD Pre-IPO funding.
The Company's specific plan of operations and milestones through September 2016:
1. Develop the introducer network further and in hopes of attracting new interest for our services.
We currently are relying on introductions to potential clients by the following firms in Asia and Europe:
- Certain registered investment houses and funds in London (United Kingdom).
- An Austrian management consultancy firm based in Vienna (Austria).
- Various investment banks based in Dubai (UAE)
- Certain Private Banks based in Amsterdam (Holland), Luxembourg (Luxembourg) and Zurich in Switzerland.
- The Colombo Stock Exchange in Sri Lanka.
- Various family offices in Dubai (UAE).
We intend to develop relationships with a further six "introducers" to potential new business for the Company before the end of December 2016.
2. Dubai expansion
We will continue to establish a firm presence in Dubai, UAE where we are attracting clients, relationships and awareness. Our Dubai operation is currently a branch office of the company allowing us a license to trade in the area. This branch office will continue to recruit new members of staff that will allow us to grow and become more efficient in Dubai.
3. Open an office in the US.
By mid-2016, we intend, on a best efforts basis, to open an office on the East coast of the USA in order to substantially expand our network of introducers to new business and also professionals and consultants.
4. Create a more efficient system for reviewing prospective businesses.
We will concentrate our efforts on the quality of the company that is introduced to us. We will start off by sending the client a standard due diligence list and request that they complete the list and send us the support for review. We will then follow-up the due diligence with a "site visit" in order to properly understand our client's business model and more importantly meet the principals in person.
We will create a deeper due diligence program allowing us to dig deep on any prospective client prior to engagement thus protecting the company from any future problems by employing one new staff member that will be responsible for the due diligence analysis and creating a report for our file on their findings.
5. Expand our consultancy to include more merger and acquisition activity.
We intend to form relationships with merger and acquisition specialists during 2015, which will hopefully enable us to:
- Find potential merger and acquisition candidates.
- Introduce our clients to brokers and investment bankers.
- Introduce our clients to the appropriate professionals (attorneys and accountants) to assist them in a public offering or exchange listing.
The only additional cost for this activity will be a very small administrative burden for telephone calls and communications to be funded out of operational income, mainly income receivable from clients currently under contract.
6. Develop in house IT department
Commencing initially with one member we will start to develop a proprietary program allowing us to easily monitor a client's development status and work in progress. We will also use this tool to manage our pipeline of clients and therefore it will become vital in our cash flow forecasting.
7. Expand the newly formed human resources department in Dubai.
In July of 2015, the Company created an in-house human resources department called "Kingsman James" (http://kingsmanjames.com/) with a view to be able to provide its existing clients and other new clients with the possibility of restructuring their companies' management with seasoned professionals if required. We intend to continue expanding this human resources department throughout 2015 and 2016.
8. Dual listing our common stock in Dubai.
During 2015 or the early part of 2016, when this option becomes feasible, we intend to try to become one of the first foreign companies to dual list on Dubai NASDAQ; our plan is to carry out a public relations campaign alongside the dual listing process with the public relations firm we have selected with a view to prepare a campaign that will have a maximum effect.
9. Expand our network of contacts within the investment community in Dubai
Our network of investment companies in Dubai is currently small; however, we intend to substantially expand our Dubai network in order to enable us to make introductions on a more institutional level. We intend to develop our network to at least twelve Investment Institutions who may have interests in minority shareholding in companies from outside of the Middle East Region.
At present we are being received with open arms by the Dubai and Middle Eastern financial community; hence we have plans to host various hospitality events for our current clients, our key contacts and upper management of the company.
10. Expand our range of business and contacts
We intend to take our consultancy service outside of the Middle East and Europe into Asia and Sri Lanka. We will expand on a 'Commission Only' basis for the individuals or companies who take on our service to offer to their clients. Accountants, lawyers and finance professionals are the target market for overlaying our service into their existing client banks in return for a percentage of fees received. We also intend to add at least two new members to our administration team during the next 12 months.
11. Road shows
We will continue the "Road shows" in Dubai with the support of the Dubai NASDAQ for companies already listed in Sri Lanka and other parts of Asia who could be seeking a dual listing in Dubai to provide liquidity and more capital raising options. We have commenced initial conversations with a brokerage house in Sri Lanka to look at their clients they have that would be suitable for the Dubai market. We will initially invite management of selected companies to Dubai for a two day event in conjunction with NASDAQ Dubai and a number of leading Investment Institutions; the anticipated cost of this is to be met by the prospective clients themselves and sponsorship from the institutions and NASDAQ Dubai.
12. Further expand our range of business and contacts
During this year 2015 and continuing in 2016, we intend to cement in the relationships created. The target markets for attracting clients are: Thailand, Sri Lanka, China, Hong Kong and Singapore.
To service the clients generated from these markets we will spend time creating a network of service companies who we can utilize to assist us on a local basis. We will explore the possibilities of dual listings for our clients in Singapore to allow us a local market for any Asian clients we will attract and giving the company a firm foothold in the Asian territory.
13. Strategic partnerships
The Company intends to actively continue to pursue the possibility of a strategic partnership that would add value to the Company's current business model and also overall organic and inorganic growth to the Company.
Financials as of June 30, 2015:
For the three months June 30, 2015 the Company had revenues amounting to $1,140,500. During these three months ended June 30, 2015, the Company received $865,500 in equity securities in a private company, intending to file a registration statement late this year or early 2016, in exchange for services performed. The valuation was based on 3,460,000 common shares at $0.25 per share and 500,000 preferred shares at $0.001 per share.
The total operating expenditures amounted to $367,491, for the three months ending on June 30, 2015. The net income from operations for this same period amounted to $773,009.
The Company's other income and (expenses) for the three months ended June 30, 2015 were $(400,207) hence the net income for this period amounted to $372,802.
Equity and Share Structure:
On August 25, 2015 we raised the authorized common shares to one billion. One of the reasons for this was to enable the Company to convert management's accrued salaries and loans into equity, hence alleviating the pressure on the balance sheet.
Our current issued and outstanding common shares amount to 752,838,629 of which management now owns 544,279,439 common restricted shares (72.30% of the total IOS). The tradable float currently stands at 199,769,922 leaving a further 8,789,268 shares that are currently in the hands of shareholders as share certificates (not in trading or brokerage accounts).
News, Press Releases and our SEC filings:
Please see all of our press releases and filings with the SEC on our webpage:
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About Global Equity International Inc.
Global Equity International Inc., through its wholly-owned subsidiary Global Equity Partners Plc., advises worldwide business leaders with their most critical decisions and opportunities pertaining to growth, capital needs, structure and the development of a global presence. With offices in Dubai and London, Global Equity has developed significant relationships in the US, UK, Central Europe, the Middle East and South East Asia to assist clients in realizing their full value and potential by bringing them to external capital and resources that place an emphasis on collaborative thinking. Furthermore, because Global Equity has offices in key financial centers of the world, they are able to introduce their clients to a unique opportunity of listing their shares on any one of the many stock exchanges worldwide. Global Equity Partners holds significant long-term equity positions in the companies that it represents.
Safe Harbor Statement
This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for markets and the demand for products. Forward-looking statements are no guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statements. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry and competition. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors, which may affect forward-looking statements. The company assumes no duty to update its forward-looking statements.