What is Use Of Proceeds ?
The “use of proceeds” refers to how a company plans to utilize the funds it generated from an IPO (initial public offering) or a secondary offering. This information is typically disclosed in the company’s prospectus, and it outlines the specific purposes for which the company intends to use the capital raised from the offering. Common uses of proceeds may include financing expansion projects, debt reduction, research and development, acquisitions, capital expenditures, and other business initiatives. Providing clarity on the use of proceeds is essential for investors to understand how their investments will contribute to the company’s growth and financial objectives.
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