Small and medium firms seeking up to $5 million for strategic initiatives are the main focus of LanX. Firms will have choices about whether to issue bonds, equities, or both. There are literally thousands of firms in our area but we are looking to bring forward securities from only a handful per year. Each firm’s management team will bear the responsibility of explaining their vision to the within-state investor base, demonstrating through a series of steps their determination to grow their business to a more competitive size. After companies go public or issue bonds, their securities will trade online and in a way accessible to the general public.
Many firms are interested in equity funding but don’t want to lose control of their firms. LanX is committed to the philosophy that at this level of firm growth, investors should “participate, not dictate.” This means that the company shares issued could be: (1) a minority share issue of common stock of less than 49%, such that management retains a majority share; (2) preferred non-voting stock that pays a dividend; (3) simple bonds. Common shares might or might not pay a dividend depending on management’s preference.
LanX is intended for normal, well-managed businesses with reasonable growth in mind, but does not require promises of exorbitant growth rates.
