Wytec is on the fast track to become publicly traded. As excited as we all are, Wytec is informing our shareholders of the proper methodology in converting their Preferred Shares and the removal of 144 legends. Please understand that Wytec has over 700 common and preferred shareholders and “cannot” respond via phone. We will accept correspondence via email only at firstname.lastname@example.org.
Preferred Stock Shareholders: Series A or Series B there is a 2 step process. First you must convert your shares into Common Stock and then have the legend removed.
Common Stock Shareholders: A conversion is not needed. You will only need to have the restrictions (legend) removed, per SEC Rule 144.
Unclear of what type of stock you own? Here’s a simple way to tell.
Red Certificates: Series A Preferred Stock
Blue Certificates: Series B Preferred Stock
Green Certificates: Common Stock
Book Entry (electronic) Shares held at Transhare or your broker: Common Stock
PREFERRED STOCK CONVERSION
LEGEND REMOVAL AND OPINION LETTER (for restricted Common Stock)
A condition precedent is Wytec having a trading symbol on an active public securities market, and Wytec being current on all of its SEC reports. Wytec shareholders also have to satisfy their applicable holding periods, generally six months for nonaffiliates. If those conditions are satisfied, they can contact Mark Richardson, at Richardson & Associates, to provide a Rule 144 legal opinion addressed to the transfer agent, and if it is satisfied, it notifies Mark and the legend is lifted. Wytec has never been a shell, so they can obtain clean removals.
Richardson & Associates charges $395 per opinion and will take calls once Wytec is publicly traded.
The following is needed from each shareholder:
- A representation letter, the form of which will come from a broker dealer (open an account now, if they don’t already have one)
- A copy of the common stock certificate from the Transfer Agent and a copy of the Preferred Stock Certificate.
- If common stock is acquired through the conversion of preferred stock (or cashless exercise of warrants), some sort of proof to verify date of acquisition of original security for holding period purposes.
About a 10 business day process from start to finish.
Please keep all forms and certificates. None of the above will take place until we are trading.