The California Stock Xchange (Cal-X) and Cal-X Crowdfund Connect has selected San Diego-based EarlyIQ to provide enterprise management reports for use in vetting companies listed on the exchange.
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In partnership with MethvenLaw, Cal-X Crowdfund Connect helps guide companies through the California Qualification by Permit process, which is essentially fully legal equity crowdfunding, and assists them in raising up to $5 million. The program is limited to California-based corporations and investors only, and participants must meet certain accreditation requirements. In addition, Cal-X Crowdfund Connect collaborates with Cutting Edge Capital to help firms arrange Direct Public Offerings in 28 states. Working with select registered broker dealers and partners, Cal-X Crowdfund Connect also provides fee-based support services to companies or bundles of companies (accelerator graduation classes) for national 506D or A offerings of up to $50 million and 2,000 shareholders. These offerings may be duly listed on password-protected portals – such as Crowdfunder.com, EquityNet, AngelList, MicroVentures, Healthfundr and HealthiosXchange – to pre-qualified and verified, fully accredited investors with $1 million (or greater) in assets and venture funds.
The California Stock Xchange is preparing to file an application with the U.S. Securities and Exchange Commission (SEC) to become a full-fledged stock exchange featuring primarily B-Lab-certified companies that follow a conscious-capitalism model. Among the many features of this planned stock exchange are: no day trading; no short trading; high levels of transparency, with monthly shareholder meetings and no filter on shareholder questions; an emphasis on promoting local investing; a holistic, comprehensive research analysis of all companies from multiple sources; endorsing investors required; index-fund-type investment tools to spread risk for investors; a nurturing support system for listed companies; and many opportunities for investors and potential investors to meet company management face-to-face, in person.
“The California Stock Xchange mission is based on the principle that following conscious-capitalism tenets of treating people well and having a sense of purpose will attract and retain the best talent, thereby leading to more innovation, happier repeat customers, and steady profitability growth and return to investors,” asserts Howard J. Leonhardt, founder of Cal-X and Leonhardt Ventures. “We believe that doing good is not just important for good’s sake, it is also good business. This is a departure from Wall Street’s overriding emphasis on short-term, net-profit postings that are often achieved at the expense of cutting research and development, employee pay and benefits, and commitment to long-term purpose, suppliers, and the community. We feel that investing in companies with a sense of purpose and care for people and community will be less of a roller-coaster ride for investors. We are setting out to prove this with solid supporting data over time. Companies and investors that believe in these principles will now have a home marketplace.”