TOP 10 QUESTIONS: UNDERSTANDING THE PROCESS
1. What does it mean when a company wants to uplist?
The answer is dependent on your relationship to the company that is undertaking the uplist. If you are a member of management or the board of directors then, it means trading your company shares on a senior level exchange such the NASDAQ or NYSE simultaneous with a positive company event(s). If you are the shareholder it means increased liquidity, positive news and the ability to deposit shares with greater ease. In both cases an uplist is positive forward movement for the company, its management, and its shareholders.
2. What exchange should our company list on?
The second most asked question is what exchange is the best exchange for me: At Uplisting.com we like to complete an exchange analysis during due diligence based on Quantitative and Qualitative items found in company filings and speaking with the C-Suite. We also encourage the company to meet with representatives from both exchanges (which we can set up) to determine which is the best exchange for your company.
3. Are there basic requirements a company should have before an uplist? If so, what are they?
Yes, each exchange has a set of rules, regulations, and basic requirements prior to uplisting. Please visit “Learn More” to gain a better understanding of what these basic requirements are. In general, though the most important quantitative requirements to keep in mind are stock price, number of shareholders and stockholder’s equity.
4. What is the cost to uplist my company?
Each exchange has a fee to uplist and submit an application. We further advise company’s that legal, audit and consultants will be an additional cost and fees can vary from company to company depending on how prepared the company is to uplist.
5. What is corporate governance? Why is it mandatory?
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, regulatory authorities and the community.
Historically, the main direct contribution of exchanges to corporate governance has been listing and disclosure standards and monitoring compliance. Stock exchanges have established themselves as promoters of corporate governance recommendations for listed companies; thus, making it mandatory for the reasons mentioned above.
6. How long does it take to uplist an issuer/ company?
Each company is different. Based on preparedness and meeting the requirements an company can uplist in as little as four to six weeks. If there are requirements that have to be met then the process may take longer. We can supply you with a review of your company to give you a better idea how long it will take you to uplist.
7. Do I have to put out a news release or file disclosure with a regulator declaring our intention to uplist?
Many companies disclose their intentions to uplist as a courtesy to their key stakeholders and shareholder base but it is not required.
8. We completed a reverse merger transaction – how does that affect our uplisting? Does it affect our listing on a senior exchange?
Under the new rules, Nasdaq, NYSE, and NYSE American have imposed more stringent listing requirements for companies that become public through a reverse merger. Specifically, the new rules would prohibit a reverse merger company from applying to list until:
Under the rules, the reverse merger company generally would be exempt from these special requirements if it is listing regarding a substantial firm commitment underwritten public offering, or the reverse merger occurred long ago so that at least four annual reports with audited financial information have been filed with the SEC.
9. Can Uplisting.com help identify Board of Director nominee candidates?
As a result of the services we provide we, from time to time, come in contact and meet qualified candidates that have relevant experience at the senior exchange level. We would be pleased to discuss with you and make introductions to qualified board members as needed.
10. We are “approved” to list on a senior exchange – now what?
This is a question that every CEO will face from his shareholders the next trading day. The simple answer is to “act” like a senior exchange level company while paying close attention to shareholder expectations.