Chinaberry’s winning combination: soft on the outside, savvy on the inside

By Reported Donna Loyle

And Then They Went Public

Unlike an initial public offering (IPO), a direct public offering (DPO) is a limited sale of company stock, primarily to customers, employees and other investors, DeMaine notes.

Chinaberry executives hope to sell 40,000 to 200,000 shares of stock at $5 per share, for a total of $200,000 to $1 million. According to its prospectus, proceeds from the sale are earmarked for working capital; debt reduction; and an increase in inventory, marketing and employee training. The company plans to retain future earnings to finance continued growth. And the current owners will continue to control the business, retaining 90 to 98 percent of company stock.