DTC Chill Advisory Services

A DTC Chill of a company’s securities by DTC refers to the restriction of services for that particular security.  This typically creates a situation where it becomes difficult trade or settle trades in a company’s securities.  This can sometimes result in DTC refusing to accept a company’s securities for deposit or their withdraw from the system.  A Chill can have a dramatic impact on an investor’s ability to trade or hold securities.

Coral Capital Advisors provides DTC Chill advisory services to companies seeking to have Chills removed from their company’s securities. We assist our clients in working with their transfer agents, brokerage firms and other participants in the market place that have an interest in seeing their securities trade without any chills or restrictions.

What can cause a DTC Chill

A DTC Chill can be imposed for a variety of reasons. This may include regulatory or disclosure issues.  There can be countless scenarios where this happens.  In working with our clients we have seen circumstances where DTC has become aware of regulatory issues affecting a company and placed a chill on its securities in order to protect the interests of investors and broker/dealers.  In other situations, a problem has occurred with the transfer agent of a company, or group of companies, and DTC has chilled all the issues represented by that particular transfer agent such as it did with client companies of Illinois Stock Transfer.

In other situations, DTC may chill a company’s securities because a corporate action was not properly presented.  DTC has adopted very strict rules concerning corporate actions and making the securities of a company eligible for DTC services following a corporate action. There are a variety of scenarios where a corporate action may not get properly processed and a company can have a chill placed on its securities until the situation is corrected.

How Coral Capital Advisors Can Help

Coral Capital Advisors has extensive experience in the DTC Eligibility application process and in assisting companies from having DTC Chills removed from their securities.  Our broad depth of experience has allowed us to develop solid working relationships with the key personnel at DTC that are in key decision making positions when it comes to the DTC Eligibility underwriting process and address Chill restrictions.  Our clients include public companies, transfer agents, law firms, and broker/dealers.

If your firm, or a client of yours has a DTC Chill on its securities or is in non-transferable status, we can help.

Please feel free to contact us to see how we may be of assistance to your company in having its DTC Chill removed or recovering from non-transferable status.