Liberated Syndication Inc. (fka LSYN)

[eastwindwards]

Trading may not be possible until the distributed shares show up in accounts of shareholders who can then turn around and sell their securities. I haven't been able to find anything definitive like T+3 when it comes to how long it takes for transfer/distribution agents to complete the distribution and for brokers to reflect updates in accounts in a spin-off scenario. T+3 may not be a bad starting point. This site talks about a different scenario involving share transfers, which apparently take 3 business days for validation and overall about a week: http://www.finra.org/investors/understanding-brokerage-account-transfer-process.

So, things may be quiet for several days.

Wonder why FABU or Libsyn has not put out a press release confirming that the distribution was completed at 9am today? The prospectus listed 9am on August 1st as the time, but there was a loophole allowing the board to cancel. It would be good to get confirmation that the distribution actually happened.


From the prospectus:


Q:

How will FAB distribute shares of our Common Stock?



A:

Registered stockholders: If you are a registered stockholder (meaning you own your shares of FAB common stock directly through FAB’s transfer agent), our distribution agent will credit the whole shares of our Common Stock you receive in the Distribution to a new book-entry account with our transfer agent on or shortly after the Distribution Date. Our distribution agent will mail you a book-entry account statement that reflects the number of whole shares of our Common Stock you own. You will be able to access information regarding your book-entry account holding our Common Stock at Interwest Transfer Company Inc.


“Street name” or beneficial stockholders: If you own your shares of FAB common stock beneficially through a bank, broker or other nominee, your bank, broker or other nominee will credit your account with the whole shares of our Common Stock you receive in the Distribution on or shortly after the Distribution Date. Please contact your bank, broker or other nominee for further information about your account.


We will not issue any physical stock certificates to any stockholders, even if requested. See “The Spin-Off—When and How You Will Receive Libsyn Common Stock” for a more detailed explanation.