Why do the underwriter and placement agents get a percentage of the money?
In order for us to comply with the securities laws of each state, our shares have to be sold by a registered or licensed broker in that state, who is entitled to a fee for his services. If we did not use an already licensed and registered brokerage firm, we would have had to hire licensed brokers and establish a subsidiary firm and then go through the process of licensing and registering state by state. This would take considerable time and money.
