When a company goes public, it usually has a strong product portfolio, revenue growth, financial backing, and profitability. Then theres iStorage Networks Inc. (Pink Sheets: IOGN.PK), which became a public company without any of those things (see iStorage Goes Public).
The Gilford, N.H.-based company began trading as a public company through the over-the-counter Pink Sheets electronic stock quote service Thursday. iStorage Networks got listed after failing to line up venture capital, but CEO Tom Makmann says he still hopes to raise around $3 million in equity funding.
iStorage Networks stock began trading at $0.02 Thursday, and the price closed today at $0.65 after 5,100 transactions.
Storage companies usually go public only after raising millions through VC or angel funding. Its not unprecedented for the move to happen sooner, though. For example, storage services provider BluePoint Data Storage Inc. (Toronto: BLP; Pink Sheets: BLPDF) has traded through the Toronto Exchange and Pink Sheets for years, and today it completed a round of private placement funding (see BluePoint Completes Private Placement).
iStorage Networks went public through a reverse merger with a company previously called Camryn Information Services. In a reverse merger, a private company merges with a public company that often has no assets or liabilities. This allows the private company to go public faster and with less cost than with an IPO.