There are four fees involved to post with ISM.
1. Initial Posting Fee. This fee can be paid in one lump sum of $100,000 or in twelve monthly payments of $10,000 each.
2. When the IPO is raised, the Broker/dealer handling the exchange charges 3% of the money raised.
3. ISM charges a stock fee in the form of a warrant when the initial capital is raised. This fee ranges from 1% – 7% of the value of the company depending on its value.
4. ISM charges a monthly maintenance fee for continued consulting, reporting, filing and stock transfer services. This begins after the IPO has been completely raised or one year after the signing of the agreement, whichever comes first. It can be paid annually at $58,000 or monthly at $5,000.
(Companies are also responsible to cover the costs of their own audits and valuations.)
Here are the estimated posting fees for a company valued at $25,000,000:
Companies worth $25 million are projected to receive:
$5,000,000 in new capital (in exchange for ownership in the company)
$10,000,000 in increased corporate value (with removal of IRS approved discounts)
Option to sell $500,000+ of the principle owner’s sweat equity
Ability to acquire competitive or complementary companies with stock instead of cash