144 Stock Liquidations and Sales

If you currently own 144 restricted stock, we can assist you by acquiring an opinion letter from an attorney and supplying all of the necessary paperwork required to have the legend removed from your certificate providing that certain rules and regulations have been met. Once the legend has been removed, we can also assist you in liquidating your now free trading shares.

What are the new Rule 144 holding periods for restricted securities?

Rule 144(d) requires restricted securities to be held for a period of time before they can be resold. Under the amendments, if the issuer of the securities has been subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act for at least 90 days, then the restricted securities of such an issuer are subject to a six-month holding period. Restricted securities of issuers that are not subject to the Exchange Act reporting requirements, however, must be held for one year before any public resale.

The amendments substantially reduce the restrictions applicable to re-sales of securities by a person who is not an affiliate of the issuer and has not been an affiliate for three months prior to the sale of the securities. Under the amendments, a non-affiliate that has held restricted securities of a reporting issuer for more than six months and less than one year can resell the securities in reliance on Rule 144, if current information (Exchange Act reports) is available about the issuer. After one year, the non-affiliate may freely resell the restricted securities of a reporting issuer without regard to any of the Rule 144 conditions.

A non-affiliate of a non-reporting issuer must hold securities for one year before any public resale. After one year, a non-affiliate may freely resell such securities without regard to any of the Rule 144 conditions.

How does an affiliate resell securities under Rule 144?

An affiliate of the issuer reselling securities in reliance on Rule 144 must comply with a current public information requirement, a volume limitation, manner of sale requirement (for equity securities), and a requirement to file a notice of proposed sales on Form 144. An affiliate reselling restricted securities must also comply with a six-month or one-year holding period requirement, as applicable.

***During the initial six month holding period there are no re-sales permitted under Rule 144***