FDCTech Inc (FDCT)

[BigBadWolf]

Well I figure that you would expect me to chime in (hopefully) as now we will be discussing Jurisdictional Gap & how that will affect US based shareholders who have been buying currently. There will still be Trading Restrictions for US based investors as no matter (where domiciled) w/o a sponsoring market maker (Form 211 approval), U.S. brokers still can’t post firm quotes unsolicited orders only. aka you can sell if someone finds you, but liquidity collapses.

Many brokers (Schwab, Fidelity, TD, etc.) usually suspend buying altogether and only allow liquidation once the parent company is domiciled abroad,
As once the foreign company that becomes the surviving entity moves to a foreign exchange while shifting their focus to foreign capital markets FINRA's loses jurisdictional control when the aforementioned happens. The result of said is that U.S. shareholders are stuck holding illiquid shares which are tradeable in theory, but not in practice.

Now once deal inked they may try sugar coat in an attempt to instill continued buying support until all transfers to foreign by telling US based shareholders that the now U.S. company's (version) shares will be converted into shares of the foreign company. These shares however would then would be held via a their transfer agent or depositary. These new shares are almost always never 99.999% DTC-eligible (meaning no electronic settlement) While US based shareholders technically would still “own” equity there would be no liquid market or easy transfer mechanism. That part will not be included in any sugar coating even if they did ever actually care in the slightest about those who have been buying.

Now my MBA side is about to show as from XOALA’s business perspective they now will be targeting foreign capital markets, not U.S. investors. (especially OTC) U.S. compliance matters related to FINRA, SEC, DTC just adds cost and delay & would bring legal exposure they don’t want. They can operate fully in Europe, even if FDCT’s U.S. ticker becomes frozen. Thus meaning the “Unsolicited Quotes Only” label is irrelevant to them but devastating for US shareholders & now we may know why they have not remedied the Form 211 issue