Small-Cap CEO/CFO Survey Results

KEY FINDINGS • Top 3 Capital Market Challenges Small Cap Companies face are: • Increasing liquidity of their stock • Increasing share price • Raising capital • Small companies lack diverse financing options • 92.2% using Private Placement and PIPES deals to raise money in 2016 • 83.3% plan to use these offering types in 2017 • Modest growth in the number of companies that plan to use Reg. A in 2017 • 6.5% in 2017 vs. 1.6% in 2016 • Access to research continues to be a challenge for Small Cap Companies • 68.1% do not have analyst coverage • Investor Relations is a key challenge for Small Cap Companies • 73.3% of companies site that their CEO/CFO heads up investor relations but only 11% of their time is spent on investor outreach 3