Going Public

Going public is a worthwhile endeavor but can be a long and complex process without guidance from a consulting firm. Acquiring DTC Eligibility and listing on the optimal stock exchange for your company increase its chance for success on the open market. DTC Eligibility allows the Depository Trust Company (DTC) to deposit the company’s securities. This helps companies publicly trade and transfer shares quicker among brokers. Some large exchanges require companies to register their securities with DTC as FAST and DRS eligible securities, but it is not required for all OTC listings. All major exchanges have a set of listing requirements before issuers are eligible to trade their securities on that market. Listing on exchanges is an effective way to raise capital and increase your company’s investor reach. Increasing investors directly translates to the ability to raise funds and grow your company.

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Review of Stock Listing Requirements

Smaller companies that desire to go public can still trade their stock on over-the-counter (OTC) markets. OTC markets are not exchanges but rather groups of dealers and companies that independently trade their stock. They have less strict listing requirements compared to larger exchanges. The Financial Industry Regulatory Authority (FINRA) oversees over-the-counter stock trading in the U.S. FINRA requires that companies file a 15c2-11 application before trading securities over-the-counter. This application ensures that the issuing company has never conducted illegal stock exchange activity such as securities fraud, and that it complies with SEC laws. There are numerous exceptions regarding this application; Issuer Consulting talks you through those exceptions, or, if you plan on filing, guides you through the filing process.

DTC Eligibility

Help you comply with the financial requirements to ensure you become DTC eligible

Stock Exchange Listing, 15c2-11

Assist your company with stock exchange listing on major markets or over-the-counter, and help you accurately file a 15c2-11 if necessary

Reverse Mergers

Discuss the process of a reverse merger, an alternative to an IPO, and determine if its the best option for your company

Review of IPOs

One of the most common ways to enter the public market is through an initial public offering (IPO). An IPO is the first time a company publicly sells their stock. This offering effectively raises capital and increases your publicity. Investment banks often help issuers complete IPOs. However, IPOs can be arduous, costly processes that may take more than six months to finalize. It often involves filing SEC registration statements, financial statements and offering documents to the SEC. In addition, your company and its employees will have to adapt to the heightened scrutiny by the public, your investors, and the SEC. As a professional consulting firm, Issuer Consulting will streamline the IPO process as well as help you explore alternatives such as conducting reverse mergers; these involve a shorter but sometimes riskier process.

Familiarizing yourself with our consulting services that facilitate your transition to public, such as advising on DTC eligibility, 15c2-11 applications, stock exchange listings, and reverse mergers, will make the entire process seamless.

Contact Issuer Consulting today!