Rule 6490 - Securities & Going Public Lawyers

Cry Me A River – DTC Chills & Global Locks – Going Public Attorneys

Securities Lawyer 101 Blog The Depository Trust and Clearing Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities.  DTCC’s subsidiary, the Depository Trust Company (“DTC”), was created to improve efficiencies and reduce risk in… Read More

U3 Halt of SWK Holdings Explained by FINRA, and Lifted Quickly

We recently wrote about a bungled dividend distribution made by Calissio Resources Group, Inc. (CRGP) that resulted in the imposition of a U3 “extraordinary event” trading halt by the Financial Industry Regulatory Authority (“FINRA”).  The halt was lifted… Read More

What is FINRA Rule 6490? Going Public Lawyers

Though FINRA’s principal mandate is to regulate broker-dealers, historically it has always exercised some oversight of the over-the-counter markets.  Part of that oversight involves processing corporate action requests from issuers of equity and debt securities not listed on national… Read More

DTC Eligibility Q & A – Creating Liquidity with Electronic Trading

Posted By Brenda Hamilton, Securities Lawyer The Depository Trust and Clearing Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities. DTCC’s subsidiary, the Depository Trust Company (“DTC”) was created to improve efficiencies and reduce… Read More

What’s Wrong With A Form 10 Shell?

Many issuers seeking to raise capital often attempt to go public using a reverse merger with a public shell. Blank Check Companies, which file a Form 10 Registration Statement (“Form 10 Shell”), are being marketed as a method for private… Read More

Don’t Be A Sucker – Reverse Mergers & Form 10 Shells

Form 10 Shells are often sold for reverse merger transactions.  A Form 10 shell is a company with no or nominal operational activity that are “Public Companies” meaning they are obligated to file reports with the Securities and… Read More

FINRA Blacklists Curt Kramer, Mazuma and Asher Enterprises

ECOS attached FINRA’s letter to Michael Siegel, president and chief executive officer of Ecolocap, as Exhibit 99.1 to the filing.  The letter informed Siegel of its decision.  FINRA acted pursuant to the provisions of Rule 6490, which allows… Read More

FINRA Uses Rule 6490 To Stop Wash, Rinse, Repeat Issuers

Securities Law Blog In late 2009, the Financial Industry Regulatory Authority (“FINRA”) proposed changes to its Rule 6490.  Until that time, the Rule had provided merely that the agency review and process certain corporate actions taken by companies not listed… Read More

FINRA Granted Authority to Initiate Quotation & Trade Halts

Securities Lawyer 101 Blog Recent SEC amendments to FINRA Rule 6440, grant authority for FINRA to initiate quotation and trade halts in OTC equity securities when it is deemed necessary to protect investors.   As amended, Rule 6440 grants… Read More

Does Rule 6490 Impact Going Public Transactions?

Securities Lawyer 101 Blog Smooth Sailing for Companies Avoiding Reverse Mergers in their Going Public Transactions FINRA Rule 6490, has evolved since it was enacted over two years ago. For some time, FINRA has required that issuers provide expansive disclosures… Read More