Marshawn Govan, owner of Fresno fintech company MKGEnterprises , is nearing final approvals for a capital raise with the U.S. Securities and Exchange Commission. Photo illustration by Cecilia Lopez

Fresno-based MKG Enterprises Corp. has cleared a regulatory hurdle with its offering with the U.S. Securities and Exchange Commission and positioning the company to begin raising capital from the public.

MKG, a Fresno-based fintech firm recently completed its Form 1-A filing following a finalized audit and legal review, a significant accomplishment after several years of challenges toward its Tier Two Regulation A+ offering.

Mortgage Loan Officer Marshawn Govan said the company received no comments from the Securities and Exchange Commission on its submission, allowing the process to move forward without revisions.

The milestone caps off a multi-year journey that started around 2020 and had pandemic-related disruptions and complications with a prior auditor. Their original auditor shut down due to high-profile regulatory trouble. This forced MKG to regroup and restart parts of the audit process.

“They ended up getting shut down, and so that put us on pause … to continue to persevere and be patient and to weather out the economy,” Govan said.

With approval officially secured on March 30, MKG can now offer shares under a Tier Two Regulation A+ structure, which allows companies to raise up to $75 million annually. However, Govan is expecting a more measured rollout, initially targeting a $5 million raise.

“But that doesn’t mean if we reach $5 million, we can’t go back and get to that $75 million,” Govan said.

The company is currently valued at around $11 million, with shares priced at 35 cents. Proceeds will support MKG’s financial technology ecosystem, including mortgage lending platforms, real estate tools and tax software.

As part of its regulatory status, MKG will provide ongoing financial disclosures, including annual reporting and audited statements based on capital raised.

MKG’s next phase will focus on marketing the offering and building investor trust.

“It will be the road show, the marketing will be the biggest piece,” Govan said. “You have to have shareholders and investors that believe in the company.”

Long term, the company aims to list on an over-the-counter market and make its shares widely accessible through retail trading platforms.

“The long term goal is to get listed on the OTC market and get a stock ticker,” Govan said. “So anyone can buy our stocks… from a company here in Fresno.”