Uplisting to a Senior Exchange in 2020
Welcome to Part One of our Uplisting Series: Uplisting to a Senior Exchange in 2020.
This is the first part of a multi-part series on uplisting and how it can benefit your company and shareholders.
At UpListing.com there are a few questions we get asked over and over by prospective clients: Do I qualify for an uplisting? Do I need to raise capital in order to uplist? How do I know what exchange to list on? What are the benefits to listing on a higher exchange? How do I get started?
It seems like a complicated prospect, but in the end, the answers all come down to three things: planning, planning, planning. And, when you’re done with that, plan some more!
The Importance of Planning
Planning is all well and good, but how do you go about doing that? The initial planning session should include focused discussions with both C-Suite level management and your Board of Directors. Discuss the benefits of how listing on a higher exchange will affect the future and growth of your company. Uplisting to a senior exchange can provide you with the ability to raise capital at higher valuations which will be accretive to your enterprise.
From there, you can talk about specific goals for the company and how raising capital as part of an uplisting can help you achieve them. This is a great jumping off point to help you build your plan going forward.
Benefits of Uplisting
In addition to the increased liquidity a company typically realizes, there are other major advantages to uplisting. For one thing, it provides your company with regulatory oversight in terms of monitoring against potential trading violations. Additionally, it gives your company the opportunity to be included in indices such as the NASDAQ and S&P as well as the Russell 2000 & 3000, complete with the increased institutional visibility and prestige that it affords.
Companies also have a greater chance of realizing research analyst coverage once traded on a major exchange. When engaged in merger or acquisition talks, a company’s stock is viewed as a more attractive bargaining chip when it trades on a national or global exchange. Additionally, and importantly, higher exchange listings enable raising capital on better terms as well eligibility 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 over the course of the year.
Selecting the Right Exchange
Once you’ve decided to uplist to a major exchange, the next question is, which one? Choosing the right exchange is an exercise in both quantitative and qualitative evaluation. There are several factors that go into the decision, including sector, visibility, and liquidity. We encourage you to speak to all the relevant exchanges before making this decision.
At UpListing.com we typically work with companies who are grappling with undervalued valuations, relatively low stock prices and modest market capitalizations. These stocks are generally referred to as microcap or penny stocks (Microcap stocks have a market capitalization between $50 million and $300 million). Many of these companies trade over the counter (OTC) and are quoted on OTC systems such as the OTCQB or, OTCQX.
UpListing.com will help determine which exchange is best for you. We set up informational meetings with senior personnel at all the major exchanges. We ensure you have all the necessary information to make an informed decision. UpListing.com works together with management, throughout your uplisting, facilitating a smooth and efficient listing process.
UpListing.com looks forward to guiding and assisting your company in these planning and decision-making stages while at the same time educating the C-Suite and Board of Directors on the roles and responsibilities involved in growing from the world of microcap OTC, to listing and trading on a major global stock exchange.
In Part Two of our Series we will explore the requirements of the exchanges, specifically that of Corporate Governance.