White Paper Offers Practical Guidance for Nontraditional Public Market Entrants
Lowenstein Sandler has announced the publication of a new white paper, " The Thorny Path to Public Trading for Unlisted Companies," by partner John D. "Jack" Hogoboom in collaboration with Dan Carter and Jason Carter of Colonial Stock Transfer Company, Inc. The paper offers step-by-step guidance for companies seeking to initiate public trading outside a traditional exchange-listed IPO, addressing Rule 15c2-11, Form 211, and the mechanics of DTC/DRS eligibility.
"For companies that avoid the traditional exchange-listed IPO, the simple act of getting a public quote and enabling electronic settlement can take months," says Hogoboom. "By explaining the Form 211 process, Rule 15c2-11's nuances, and DTC/DRS pathways, we help management teams set realistic timelines and avoid unnecessary delays."
"DTC eligibility and FAST/DWAC readiness are often the gating items to real liquidity," said Dan Carter, Colonial's Vice President of Sales & Marketing. "Our guidance outlines practical steps issuers can take with their transfer agents to accelerate clearance and settlement."
Key insights from the white paper include:
- What Rule 15c2-11 requires, including shell company restrictions and reporting grace periods
- OTC Markets Initial Review versus broker-dealer Form 211: roles, selection criteria, and typical timing (often four to seven months)
- How to obtain a CUSIP and why it matters
- A roadmap to DTC eligibility, FAST/DWAC and DRS approval; common DTC denial triggers and remediation
- Practical tips for engaging a market maker and completing the
first unlegended share deposit needed for DTC processing
The white paper is intended to help founders, boards, and investors plan effectively, select the right service providers, and streamline the path to initial public quotations and electronic settlement.
About Lowenstein Sandler
Lowenstein Sandler LLP is a national law firm with over
375 lawyers based in New York, Palo Alto, New Jersey, Utah, and
Washington, D.C. The firm represents leaders in virtually every
sector of the global economy, with particular emphasis on
investment funds, life sciences, and technology. Recognized for its
entrepreneurial spirit and high standard of client service, the
firm is committed to the interests of its clients, colleagues, and
communities.
About Colonial Stock Transfer Company, Inc.
Colonial Stock Transfer Company, Inc. is a stock transfer
agent headquartered in the historical stock exchange district in
Salt Lake City. Colonial provides stock transfer agent and issuer
compliance services to public companies listed on the NYSE, NASDAQ
and OTC Markets and offers a full suite of services for
privately-held companies. Established in 1987, Colonial provides
issuers and shareholders the most professional, cost effective and
innovative services in the industry by going beyond standard
transfer agency agendas and incorporating a more personal touch
with competent, efficient employees and unmatched customer
service.