Uplist Series Part IV: Seven Benefits of Uplisting To A Senior Exchange
Welcome to Part IV of our UpListing Series: Seven Benefits of Uplisting To A Senior Exchange. This is the fourth part of a multi-part series on UpListing from the OTC Markets to the Nasdaq or NYSE and how it can benefit your company and shareholders.
Most company CEO’s believe they already know the benefits of Uplisting to a higher exchange and certainly understand they will have increased liquidity after they list on a major exchange. However, in addition to increased liquidity, there are other major advantages such as:
1. Better Funding Terms. It is easier to raise capital on better terms on a higher exchange. Companies on the Nasdaq or NYSE are eligible to raise capital pursuant to a shelf registration, such as an S-3 or F-3, which allows the company to raise funds at their discretion and terms over the course of the year. In addition, Uplisting will allow you to raise capital at a higher valuation and on a more consistent basis as needed for the growth of your company.
2. Analyst Coverage. Companies have a better chance to receive analyst coverage if traded on a major exchange. Most investment banks do not provide coverage for OTC companies. In the early periods after Uplisting, a company usually gets coverage from top analysts at different investment banks as well other independent research firms which will make your company’s stock more attractive to investors.
3. M&A Currency. When engaged in merger or acquisition talks, your company’s stock will be viewed as a more attractive bargaining chip if it is listed on a national exchange. This will allow you to negotiate better deals for you and less dilution for your shareholders when you undertake an acquisition or merger.
4. Trade Monitoring. Uplisting to a major exchange provides your company with regulatory oversight in terms of monitoring against potential trading violations. This will allow your company to avoid a lot of the short selling issues that regularly occur for companies that trade on the OTC Markets.
5. Index Inclusion. Companies get the opportunity to be included in indexes such as the NASDAQ and S&P as well as the Russell 2000 & 3000. This allows your company to receive funding from institutional funds that can only trade in companies on these indexes as well as providing you with additional credibility for other funds and investors.
6. Market Intelligence. Nasdaq and NYSE are dedicated to providing corporate clients with successful access and interaction with the capital markets, accompanied by strategic C-suite solutions that provide market intelligence and board-level collaboration. This means you are not alone in the trading process. You can rely on the exchange and market makers to provide answers to trading questions as well as assist you in maintaining an orderly market.
7. Visibility. Listed companies work closely with Nasdaq/NYSE to leverage their unique visibility assets. You can use the exchanges for shareholder meetings, roadshows or events which allow more investors to see the benefits of your company.
Uplisting is one of the many tools a company can utilize to help create long-term shareholder value for a company with a solid business plan. We can assist you in the process. Contact Uplisting.com to determine the right time for your Uplist to a national exchange.
Click this link to see Uplist Series Part I: UpListing to a Senior Exchange in 2018
Click this link to see Uplist Series Part II: Corporate Governance
Click this link to see Uplist Series Part III: Investment Banking
About Todd Heinzl:
Currently Managing Director of The Governance Box (GBX) and UpListing.com, Todd Heinzl holds over 25 years of experience in the investment and financial services industry. With a focus on assisting globally minded micro and small cap companies achieve up-listing results for their shareholders, UpListing.com offers CEO’s and their Board of Directors uplist strategic plans, through collaboration, in the development and implementation of effective uplist strategy and governance policy. As managing director of both financial advising enterprises, Mr. Heinzl works with companies from a variety of industries with a focus on their corporate governance and subsequently to facilitate their uplisting to senior exchanges such as NASDAQ and NYSE American. Mr. Heinzl is a member in good standing with the National Association of Corporate Directors (NACD), European Corporate Governance Institute (ECGI), and the Royal Canadian Military Institute (RCMI).
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