Rick Gibb: What happens to my shares in an OTCBB company when it gets approved for a NASDAQ listing?
I own shares in the company EcoTality (etle.ob). They have just announced they are filing for a NASDAQ listing. I am curious what happens to my etle.ob shares when this happens. Will they be converted over to the NASDAQ listing or will I have to cash them out and reinvest in the new listing?
Answers and Views:
Answer by jeff410
You still own them. You dont have to cash them out. Everything is the same as before. They just trade on the NASDAQ. The shares probably got a good pop on the news and they will probably have more liquidity on the NASDAQ. They might get analyst coverage and institutional investors may start buying. Its usually a good thing to go from the OTCBB to the NASDAQ.
Filing still means that NASDAQ has to approve of the application.
They did a 1 for 60 reverse split to try and make this happen.
This company has huge accelerated liabilities, and technically is worthless.
https://finance.yahoo.com/lookup?s=ETLE.OB
I think they are undercapitalized, have too much debt, and will not be able to successfully compete long term against any of the major auto companies for electric vehicles.
As for your stock, I would not expect much fanfare from the institutions given such a high risk balance sheet. The stock has been widely volatile and speculative in nature.
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