Large Corporation with Tight Deadline
One of ClearTrust’s clients is a record-breaking high growth company with a large shareholder base.
Monumental Corporate Action Required Shareholder Approval at Meeting
The management team of the Company worked around the clock in preparation for a large corporate action. The proposal would require shareholder approval at a meeting. A package containing lengthy disclosures and information would need to be printed and mailed to each shareholder of record by the mailing deadline prescribed in the company’s bylaws.
ClearTrust Meets Tight Deadline
By the time all of the documents were finalized and approved for printing, ClearTrust had a window of only 12 hours to print, sort, and mail over 100,000 documents. ClearTrust was able to engage dedicated, high-volume printing services and assemble a fast-response team to work overtime to complete the project.
Successful Execution, Greater Peace of Mind
Management of the company was confident in ClearTrust’s ability to meet the incredibly tight turnaround requirements of this project. Once the documents were finalized and in ClearTrust’s hands, they enjoyed peace of mind knowing the project would be completed on time. The Shareholder Meeting was a success.
OTC Listed Company
Our client was a fully reporting, FAST & DWAC eligible company listed on OTC. They had several thousand shareholders and high volume trades.
Stock Over-Issuances and Unauthorized Share Issuance by Prior Agent
The client’s prior transfer agent created several record-keeping problems through unauthorized stock issuances and fraudulent brokerage deposits. In one case, the transfer agent had issued several million free trading shares to an affiliate of the company, then deposited the shares via DWAC into the affiliate’s brokerage account. These transactions were never authorized by the issuer. Due to poor record-keeping and lack of due diligence on the part of the transfer agent, these errors were never detected.
ClearTrust Discovers Problems, Proactively Resolves Them
Once the client moved their business to ClearTrust, a complete due diligence was conducted of the account. The client’s own record of outstanding shares was out of balance with the transfer agent’s reports, and was searching for possible answers. Working through Super Bowl weekend, ClearTrust was able to discover the erroneous issuances and transfers caused by the prior agent. ClearTrust responded immediately, contacted the broker involved, and acted as the center point of contact for the forced buy-back that subsequently occurred to return the unauthorized shares to the issuer.
Shares Recovered, Greater Peace of Mind
The client was grateful to ClearTrust for working above and beyond to detect and resolve several problems caused by the prior transfer agent. Because of ClearTrust’s due diligence processes and effective operational controls, the client now has peace of mind knowing over-issuances and bad transfers are no longer a risk for the company.
Another Listed Company
Issuer that is a fully reporting and a publicly traded company. They have important relationships with a handful of key accredited investors that give capital infusions from time to time.
Prior Transfer Agent was Unwilling to Honor Terms of Promissory Note
Issuer had entered into an agreement with an important funder that allowed for the conversion of certain debt into common stock. The prior transfer agent was unwilling to comply with the terms of the agreement, even though the issuer had a contractual obligation to the investor. They needed a new agent who could fully meet their needs, but couldn’t afford much “down time” time to switch agents because their investors were active.
ClearTrust Arranges Swift, Seamless Transition & Satisfies Investor Requirements
Issuer sought out an agent who could satisfy the requirements of their investor agreements, and also act quickly to set up the account. On recommendation from a colleague, they found ClearTrust. Within 48 hours, ClearTrust had successfully completed setup of the account, including importing shareholder data from the prior agent. Issuer was able to satisfy its obligations to investors, and shareholders were able to transfer or deposit stock with virtually no downtime.
Investors Happy, Greater Peace of Mind
Management of this issuer no longer has to worry about appeasing its investors. Shares are issued and transferred in a timely fashion, and any obligations to their key accredited investors are met by ClearTrust. The switch to ClearTrust was seamless, as promised, and their investors are happy because of the change.