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Restricted Stock Partners Report Covers Impact of Rule 144 Change
Business Editors
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.
KEYWORD: NORTH AMERICA NEW YORK UNITED STATES
INDUSTRY KEYWORD: PROFESSIONAL SERVICES ACCOUNTING BANKING FINANCE HUMAN RESOURC
S COMMUNICATIONS PUBLIC RELATIONS/INVESTOR RELATIONS
SOURCE: Restricted Stock Partners,
CONTACT INFORMATION:
Restricted Stock Partners
Barry E. Silbert, 212-473-2408
bsilbert@RestrictedStockPartners.com
or
Kowal Communications, Inc.
David P. Kowal, 508-393-7023
APR
kowal@Kowal.com
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