This is a question we receive at least once a week! And considering the stories of what has transpired with DTC and issuers over the past couple years, it is a very valid question indeed! However, our answer to this question might surprise you.
Before I answer the question though, let me say that we completely understand why issuers and their advisors have been confused and, in many cases, quite frustrated in their dealings with DTC. For crying out loud, DTC placed a “chill” on over 500 companies and many of the companies never received notice regarding the reason. This has had a devastating effect on some of these companies. It is very difficult to create a market for your company’s stock and attract investors when that stock is not DTC eligible…in fact, it’s almost impossible.
That being said, DTC Solution’s answer to the question is, “No, DTC is NOT as bad as you hear.” We have not had any major problems communicating with DTC and we have seen just about every situation under the sun! Many of those issues were resolved in a quick and efficient manner – the key to a timely solution is to understand the procedures and requirements of DTC.
Unfortunately, some situations are beyond ANYONE’s ability to fix. At least it’s better to know this upfront, before spending thousands of dollars and many hours of your time. The first tip in this whole process: do not contact DTC directly. This can make matters worse! Get an advocate to first understand what the problem really is and develop a strategy to deal with it – whether it is us or someone else – and then work within the DTC system to resolve it.
Keep a look out for our next article titled “My Company Received a Deposit Chill, How Do I Fix This?”
For questions regarding this article or assistance with DTC eligibility, please contact:
Mark Mahaffie | 303.960.2858 | mark@issuereligibility.com