Financing During Times Of Crisis

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Sterling Group International Making
Cross-Boarder Strategic Transactions Happen
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• Fewer competitors
• Many companies just give up
• Some still thrive
• Discouragement turned around leads to positive
  energy
• Secret of success is pure perseverance Edison
  went through 100,000 materials before finding
  right one for light bulb filament.

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Sterling Group International Making
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• PIPES-Private Investment in Public Equity
• Reverse Mergers merging with shell public
  company to raise money from the public markets
• Some still pushing these financing modalities
  with disastrous results Companies are public,
  with all the costs and disclosures and not enough
  money to grow operation and finance being a
  public company.

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Sterling Group International Making
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• Definition A Cross-Border Strategic Investor
  (the Investor)is a company in the same industry
  as the Investee (the company that wants the
  investment) and
• The Investor and the Investee are in different
  countries and compete in different markets
• Assume that
• The Investor is a more mature company with cash
  and needs innovative products
• The Investee is a smaller company with very
  innovative products and needs cash.
• The transaction involves
• The Investor investing in the Investee
• The Investee licensing its innovative products to
  the Investee
• And sometimes the Investee licensing the products
  of the Investors for its markets

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Sterling Group International Making
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• Win for Investee since
• Investee gets money and
• Larger company from another country marketing its
  product
• Validation of having larger company invest
• Help from more sophisticated management of larger
  company on its Board of Directors

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Sterling Group International Making
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• Win for Investor
• Investor gets innovative products to market
• The investment into Investee reinforces its own
  investment. ITS INVESTMENT IS WORTH MORE
  AUTOMATICALLY BECAUSE
• It is worth more because the Investor has
  increased the Investees sales by selling the
  Investees innovative products in a country the
  Investee would not even think about marketing
• The bigger Investors investment validates the
  smaller investors products by the very
  investment of the Investor.

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Sterling Group International Making
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• Large Chinese generic pharmaceutical company
  Invests in a small, innovative re-formulation
  Israeli pharmaceutical company.

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Sterling Group International Making
Cross-Boarder Strategic Transactions Happen
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Email Howard.David.Sterling_at_gmail.com Phone
Number 1-917-653-5423
Sterling Group International Making
Cross-Boarder Strategic Transactions Happen
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