How Being Public Helps Aires Tech and Our Customers

This month, Aires Tech celebrates its fifth anniversary as a publicly traded company. Today our shares trade in Canada ( CSE: WIFI ), in the USA ( OTCQB: AAIRF ), and in Germany ( FSE: A5A0 ).

Deciding whether to keep a company private or to take it public affects everything from control to accountability, day-to-day operations, financial strategy, long-term growth, and more.

In our case, we chose to go public because we had full confidence in our patented science together with a strong commitment to company transparency.

That decision has reinforced Aires Tech’s position as an industry leader in the EMF protection space and helps investors and the public know our company and tech is both legitimate and compliant with legal requirements.

Some of the biggest differences between private and publicly traded companies relate to ownership, accountability, and how they raise the money (capital) needed to operate and grow.

• OWNERSHIP: Owned by a limited group of investors, such as founders, management, employees, and private investors like venture capitalists or private equity firms.
  
  

• TRADING: Investors hold shares that are not traded on public stock exchanges.
  
  

• LIQUIDITY: Shares are generally “illiquid”, meaning they can’t be easily sold or traded, which can limit investors’ ability to cash out or transfer ownership.
  
  

• CONTROL: Concentrated ownership means shareholders have more control over the company’s operations and decisions than with a publicly traded company.
  
  

• DISCLOSURE: The company isn’t required to disclose as much information to the public, which enables them to keep financial data, business strategies, and operational details confidential.
  
  

• CAPITAL: While they can raise money through private investors, venture capital, or loans, private companies typically have less access to capital than public companies. 

• OWNERSHIP: Owned by a virtually unlimited number of individual and/or institutional investors.
  
  

• TRADING: Investors hold shares that are listed and traded on public stock exchanges. Some shares have voting rights while others can be non-voting shares.
  
  

• LIQUIDITY: Shares are generally “liquid” since they can be easily bought and sold on public stock exchanges. This liquidity enables investors to more easily cash out. It can also enable the company to raise more capital.
  
  

• CONTROL: Due to the large number of investors, even shareholders with voting shares don’t have anywhere near the control over the company than with a private company.
  
  

• DISCLOSURE: The company is required by law to publicly disclose extensive information about their finances, operations, and strategies, and to disclose significant events that could affect the company’s stock price.
  
  

• CAPITAL: The company can raise substantial amounts of capital by issuing and then selling shares, either when going public (e.g., through an IPO or Initial Public Offering) or later through capital raising rounds. 

• Capital: We already talked about how public companies can raise money by issuing and then selling shares. We can then use that money to expand our market reach, grow our sales, research and develop new products, reduce debt, and whatever else will help Aires Tech be the best and most successful company possible.
  
  

• Credibility: Being a public company on major stock exchanges significantly elevates our profile and gives us a hard-earned level of credibility in the marketplace. Anybody can start a business, but not just anybody can build a successful publicly traded business.
  
  

• Brand Awareness : The process of going public often attracts media attention, which can raise brand awareness and attract new customers or partners. As well, public companies can receive more attention from the media and the market.
  
  

• Trust : All that scrutiny and disclosure we mentioned earlier understandably builds trust with our customers, suppliers, and investors.

• Partnership Opportunities : Being public increases our market visibility. That extra exposure can lead to new business partnerships, collaborations, and opportunities for growth that a private company might never enjoy.

The extra level of disclosure required of public companies is far greater than most people realize.

As our CFO, Vitaliy Savitsky, puts it:

“As a public company, we face much more stringent financial reporting, corporate governance, and oversight over the management team, including validating identities and clean records, and disclosing such things as bankruptcies and other legal records. We’re required to establish a board of directors and hold regular shareholder meetings.

We’re also questioned by competition bureaus, regulators, securities exchanges, investors, banks, investment bankers, and other partners on our communications, press releases, and the credibility of our materials that substantiate our claims.”

On top of all that, Investment Banks and their legal teams put their reputations on the line when they help raise funds for a public company like Aires. As such, they do an incredible amount of due diligence first since (1) they don’t want to get sued for selling the shares of a questionable company, and (2) they don’t want to be associated with a company that could hurt their reputation.

Our 2019 IPO was a 3-year process in due diligence, led by Canaccord Genuity, who did an extensive review of our technology, peer-reviewed papers, and even engaged outside expertise as needed. We went through a similar process more recently with Eight Capital in Q2 2024.

It’s important for investors to understand that this intense scrutiny is in their best interests and helps them know our company and technology is legitimate and fully above board.

As a publicly traded company, Aires Tech provides public access to all our patented, proven technology . That means there’s no room for making baseless claims. In the health and wellness industry, where products often promise significant benefits, it’s not uncommon for private companies to make exaggerated or unsubstantiated claims.

But as a publicly traded company, Aires Tech can’t afford to engage in such behavior. The potential legal and financial fallout that comes from making baseless claims is significant because public companies are simply held to much higher standards of accountability.

The field of EMF protection is one that demands rigorous scientific scrutiny.

Consumers are increasingly aware of the potential risks associated with EMF (electromagnetic field) radiation exposure, and they’re seeking solutions that are both effective and scientifically validated.

For Aires Tech, that meant submitting our technology to extensive testing before we could become a publicly traded company. These tests evaluated the effectiveness of our products in reducing the potential harm caused by EMF exposure.

The testing process involved independent laboratories, scientific studies, and real-world evaluations to ensure Aires products met the highest standards of safety and efficacy.

The successful completion of these tests provided the necessary validation that Aires Tech products are not only innovative but also effective in delivering on their claims.

This validation was crucial in the journey to becoming a public company. Getting listed as a publicly traded company isn’t just a financial milestone for us; it’s a reflection of the trust that regulators, investors, and consumers place in our technology.

The rigorous testing process also means our Aires Tech products have been scrutinized to a level that few other EMF protection solutions have.

That thorough vetting process sets Aires apart in the marketplace. It gives customers the assurance that they’re investing in a product that’s been scientifically proven to work.

Yes, being a public company involves a lot more work and accountability, but in our minds, it’s worth all the extra effort to provide our customers with the level of security they deserve.