NEW YORK--(BUSINESS WIRE)--What happens when billions of shares of unregistered stock become saleable into the public market all on the same day?
Investors will find out on Feb. 15, 2008, when a reduction in the Rule 144 holding period for restricted shares of public companies takes effect. The holding period, which is being shortened from one year to six months, will result in billions of shares from thousands of companies becoming eligible for public resale on that day.
“Hundreds of companies may see share amounts equal to 100 or more times their average daily trading volume available for sale on Feb. 15,
” according to Barry E. Silbert, founder and CEO of Restricted Stock Partners.
“While it is difficult to predict what impact this will have on share prices, investors will certainly want to be familiar with the companies that may be affected.
”
Restricted Stock Partners, which manages the Restricted Securities Trading Network (RSTN), an online trading platform for restricted securities, has prepared a Special Report that covers a group of issuers that might be affected by the regulatory change.
The Special Report, which was prepared exclusively for members of the RSTN, is based on research on companies that issued unregistered securities in connection with private investment in public equity (PIPE) deals during the affected period. Some highlights of the Special Report include the following:
- 300 transactions and 258 issuers have been examined;
- 66% of the issuers highlighted in the Report will have greater than three months of their average daily trading volume eligible for sale on Feb. 15;
- 37% of affected issuers will have greater than one year of their average daily volume eligible for sale on Feb. 15; and
- One-third of affected issuers in the Report will have greater than 25% of their market capitalization eligible for sale on Feb. 15.
Silbert believes that a large number of publicly traded companies, including those that did not issue shares in PIPE offerings, will have shares that become saleable on Feb. 15. He added that all restricted and unregistered securities are eligible to be sold, prior to the hold period expiration, in privately negotiated transactions through RSTN, which would avoid the market risks inherent when a large number of shares become saleable.
The RSTN has already attracted more than 400 members, including global financial institutions, hedge funds, mutual funds and other institutional investors, who collectively manage over $200 billion in assets. To date, more than 1,000 transactions have taken place on the network, which was founded in 2005. Membership to the RSTN is available at no charge to institutional and accredited investors.
Restricted securities are commonly issued through private placements, corporate mergers and reorganizations, and as compensation. In addition to Rule 144 stock, other restricted securities traded through the RSTN include unregistered stock, warrants, convertible securities, 144A equity and private company securities.
“As the RSTN membership has grown, it has become an increasingly valuable resource to both buyers and sellers of restricted securities,” Silbert said. “We’re pleased to be able to provide this report to RSTN members and look forward to releasing a number of exciting products and services dedicated to this $1.2 trillion asset class.”
About Restricted Stock Partners
Restricted Stock Partners (RSP) of New York, N.Y., a division of Green Drake Capital Corp. (Member FINRA/SIPC), manages the Restricted Securities Trading Network (RSTN) (www.RestrictedSecurities.net), the largest online marketplace for restricted securities in the United States. RSP handles all administrative and settlement services associated with restricted securities transactions. For more information, visit www.RestrictedStockPartners.com.
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发表于 2008-2-12 12:22 PM
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