As Frankfurt announced they will be shutting down the open market, there will now be the Entry Standard as the entry level to this market, with perhaps Berlin and Stuttgart being seen as entry levels to the German Markets in general. It looks like in the future a company will need audited financials and a prospectus to get on the entry standard in Frankfurt. Although it will add cost and time to a German Listing, it will help to keep Fraud out of the German Market place and protect the integrity of the German markets for legitimate companies.
Germany listing and fundings will still be faster than any other viable market in the world.
All the new rules are note known, as there will be more announcements in March and April but we do know the new rules will add about 20k to 30k or more cost to going public on the FSE.
So if someone wants to go to Frankfurt Or Berlin now is the time. It will only get more expensive and harder as we go along. The specialists have told me their fees will probably be going up too. A company starting now might make it, but they should be prepared for additional expenses if something unknown gets announced.
Big companies with revenues should have no problems with the new rules. Start ups may.
All existing open market companies will have until September to move up to the Entry Standard.
We can help with audits and prospectuses at a reasonable cost and also with finding another company to take over your shell in case you want to quit and give up. Better to sell your shell to someone who can afford to move it up than just give up.
The open market will still be open to companies listed elsewhere (except US OTCBB). So if you are a Canadian, UK, Australian or another listed company, you can still get onto Frankfurt easily.
Berlin is still viable and you can raise money there. However, they may be influenced one way or the other by FSE’s move. Be aware that things are in flux and new rules or procedures can pop up anywhere at anytime. The time to do things is now before too many rules change and costs go up.
Remember Berlin also takes OTCBB as dual listings.
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