ANN: DTC Eligibility Approved

[stockduck]

The last announcement about the DTC eligibility for Brainchip is clearly a price-sensitive message for me personally. I can only interpret this news in the overall context of the reported past business development. Therefore it seems to me like the preparation of a Nasdaq listing and other stock exchanges in the world. Just unbelievable. But my gut feeling tells me it will happen.

 

[Bobbygant]

Was the late announcement a deliberate move or just timing of when they revived the info?

 

[Bigal7425]

No doubt US investors were jumping off meta last night in order to free up cash that they can now splurge into BRN

 

[Fact Finder]

The following is the now complete plain English explanation of the importance of the DTC grant.
My opinion only DYOR
FF
AKIDA BALLISTA

"This one was something we put a ton of work into months ago and then Covid killed the DTC! Our application sat there literally for months which was very upsetting and disappointing considering the amount of work and the cost that went into it. But finally it has happened.

There are a few websites that actually explain it all very well which I can forward to you if you haven’t already found them. But if I were to put it into simple terms, I would explain it as follows:

When our shares are traded on the OTCQX, the settling and clearing process is happening on the ASX because we had no access to the automated, electronic, clearinghouse system in the US. Because of this, the number of firms/institutions that could access our shares was very limited and the transaction fees were very expensive. Many of these firms can only deal in the securities of DTC members.

By joining DTC and having the ability to settle and clear locally in USD, and by having a local US based transfer agent (or registry as it’s called there), and without the need to settle and clear on the ASX (CHESS), all DTC member firms and institutions now have easy access to our shares. Previously, if you were to purchase the BRCHF shares, you would likely see an additional fee of up to $55 (USD) tacked on to the cost of your trade to cover the costs of administering these trades. That is no longer the case. I tested it today and noted that the fee to trade was $6.95/trade. With the increase in the number of eligible firms having access to our shares combined with a dramatic decline in transaction fees, we should see increased demand for the shares. It’s all aimed at increasing our exposure in the US. The more places our name pops up, the better!

Last but not least, DTC eligibility is a requirement of all the major exchanges in the US. If the company were to pursue a duel listing at some point in the future, this would be another step in the right direction although the ADR is the perfect instrument for that already.

The sponsor is no secret at all. I worked with a good group of people at a company called MCAP. Here is a link for that… https://www.mcapmarkets.com/. They are also the market maker in our shares and if you ever look at the OTC quotes, you’ll see them there. They used to be the only firm listed but now you will see there are a few more… https://www.otcmarkets.com/stock/BRCHF/overview

Our lead adviser on this project was an Aussie who lives here in California and helps companies attain DTC eligibility. We also worked with an American lawyer who lives in Sydney and is licensed to practice law in both countries which we needed for this project.

I think this website explains it fairly well but there are several. https://www.dtceligibility.com/

Another way to think about it is that if it weren’t for the fact that we are listed on the ASX and have access to the CHESS system, it would be nearly impossible to trade our shares without access to DTC here in the US. Believe it or not, in this country, without access to DTC (or another exchange) broker dealers would have to physically transfer stock certificates to settle trades like it was done decades ago. At least we had the ASX to fall back on and our trades here could be run through custodian accounts there to clear and settle.

 

[Boomer66]

The following is the now complete plain English explanation of the importance of the DTC grant.
My opinion only DYOR
FF
AKIDA BALLISTA

"This one was something we put a ton of work into months ago and then Covid killed the DTC! Our application sat there literally for months which was very upsetting and disappointing considering the amount of work and the cost that went into it. But finally it has happened.

There are a few websites that actually explain it all very well which I can forward to you if you haven’t already found them. But if I were to put it into simple terms, I would explain it as follows:

When our shares are traded on the OTCQX, the settling and clearing process is happening on the ASX because we had no access to the automated, electronic, clearinghouse system in the US. Because of this, the number of firms/institutions that could access our shares was very limited and the transaction fees were very expensive. Many of these firms can only deal in the securities of DTC members.

By joining DTC and having the ability to settle and clear locally in USD, and by having a local US based transfer agent (or registry as it’s called there), and without the need to settle and clear on the ASX (CHESS), all DTC member firms and institutions now have easy access to our shares. Previously, if you were to purchase the BRCHF shares, you would likely see an additional fee of up to $55 (USD) tacked on to the cost of your trade to cover the costs of administering these trades. That is no longer the case. I tested it today and noted that the fee to trade was $6.95/trade. With the increase in the number of eligible firms having access to our shares combined with a dramatic decline in transaction fees, we should see increased demand for the shares. It’s all aimed at increasing our exposure in the US. The more places our name pops up, the better!

Last but not least, DTC eligibility is a requirement of all the major exchanges in the US. If the company were to pursue a duel listing at some point in the future, this would be another step in the right direction although the ADR is the perfect instrument for that already.

The sponsor is no secret at all. I worked with a good group of people at a company called MCAP. Here is a link for that… https://www.mcapmarkets.com/. They are also the market maker in our shares and if you ever look at the OTC quotes, you’ll see them there. They used to be the only firm listed but now you will see there are a few more… https://www.otcmarkets.com/stock/BRCHF/overview

Our lead adviser on this project was an Aussie who lives here in California and helps companies attain DTC eligibility. We also worked with an American lawyer who lives in Sydney and is licensed to practice law in both countries which we needed for this project.

I think this website explains it fairly well but there are several. https://www.dtceligibility.com/

Another way to think about it is that if it weren’t for the fact that we are listed on the ASX and have access to the CHESS system, it would be nearly impossible to trade our shares without access to DTC here in the US. Believe it or not, in this country, without access to DTC (or another exchange) broker dealers would have to physically transfer stock certificates to settle trades like it was done decades ago. At least we had the ASX to fall back on and our trades here could be run through custodian accounts there to clear and settle.

View attachment 89

Thanks Fact Finder for giving many of us the clarity and insight of what this means for Brainchip. Very exciting times ahead! Cheers

 

[Fact Finder]

For what it is worth Brainchip has a very detailed strategic plan going back to when Mr. Dinardo and Ms. Julie Stein were working at full capacity. I have a vision of Mr. Dinardo at the AGM in 2018 speaking to shareholders in attendance and almost as if he was thinking aloud spoke about what a great strategic thinker Ms. Julie Stein was and a huge asset to Brainchip. Without labouring the point it was Mr. Dinardo who following these musings who guided Brainchip to the edge and focused all its scarce resources on producing the AKIDA technology for deployment at the edge. On more than one occasion in his webinars where he disclosed obliquely the many relationships that we now count as certainties and in answering questions about a possible Nasdaq listing never discounted that as an idea.

It is clear to me that the medium term plan is to take Brainchip to the Nasdaq and in incremental steps the foundations are being laid down to facilitate this when the time is right. My personal opinion is that the plan presently is looking at 2 to 3 years for this to occur as a joint listing. Why do I say this time line well it is not extremely scientific but there are criteria regarding earnings, shares on issue and share price that need to be met and if you look at the time line presented by Peter van der Made at the last AGM regarding income growth end of 2023 all going as planned will be the first point where Brainchip is likely to achieve these three criteria or start to confidently approach them.

In all my discussions with the company it takes a very conservative view regarding growth and share price so it could hit these points before end 2023. My mate Blind Freddie does not discount this occurring particularly if one of the glamour signings we long for occurs sooner than later and is disclosed to the ASX.

Despite being here my forward estimate remains at least $2.75 end of 2022 but this could easily be blown out of the water after what we experienced with the Mercedes validation of the technology. It takes little imagination to put a figure of $5.00 on the effect that a full blown commercial agreement announcement with Mercedes would cause.

My opinion only DYOR
FF

AKIDA BALLISTA

 

[Reuben]

For what it is worth Brainchip has a very detailed strategic plan going back to when Mr. Dinardo and Ms. Julie Stein were working at full capacity. I have a vision of Mr. Dinardo at the AGM in 2018 speaking to shareholders in attendance and almost as if he was thinking aloud spoke about what a great strategic thinker Ms. Julie Stein was and a huge asset to Brainchip. Without labouring the point it was Mr. Dinardo who following these musings who guided Brainchip to the edge and focused all its scarce resources on producing the AKIDA technology for deployment at the edge. On more than one occasion in his webinars where he disclosed obliquely the many relationships that we now count as certainties and in answering questions about a possible Nasdaq listing never discounted that as an idea.

It is clear to me that the medium term plan is to take Brainchip to the Nasdaq and in incremental steps the foundations are being laid down to facilitate this when the time is right. My personal opinion is that the plan presently is looking at 2 to 3 years for this to occur as a joint listing. Why do I say this time line well it is not extremely scientific but there are criteria regarding earnings, shares on issue and share price that need to be met and if you look at the time line presented by Peter van der Made at the last AGM regarding income growth end of 2023 all going as planned will be the first point where Brainchip is likely to achieve these three criteria or start to confidently approach them.

In all my discussions with the company it takes a very conservative view regarding growth and share price so it could hit these points before end 2023. My mate Blind Freddie does not discount this occurring particularly if one of the glamour signings we long for occurs sooner than later and is disclosed to the ASX.

Despite being here my forward estimate remains at least $2.75 end of 2022 but this could easily be blown out of the water after what we experienced with the Mercedes validation of the technology. It takes little imagination to put a figure of $5.00 on the effect that a full blown commercial agreement announcement with Mercedes would cause.

My opinion only DYOR
FF

AKIDA BALLISTA

I just had a listen to Sean's presentation - and the confidence he spoke with looks like Mercedes has already signed the dotted line. He also states that Mercedes have vaildated us.... Good time ahead

 

[Okeydokey01]

For what it is worth Brainchip has a very detailed strategic plan going back to when Mr. Dinardo and Ms. Julie Stein were working at full capacity. I have a vision of Mr. Dinardo at the AGM in 2018 speaking to shareholders in attendance and almost as if he was thinking aloud spoke about what a great strategic thinker Ms. Julie Stein was and a huge asset to Brainchip. Without labouring the point it was Mr. Dinardo who following these musings who guided Brainchip to the edge and focused all its scarce resources on producing the AKIDA technology for deployment at the edge. On more than one occasion in his webinars where he disclosed obliquely the many relationships that we now count as certainties and in answering questions about a possible Nasdaq listing never discounted that as an idea.

It is clear to me that the medium term plan is to take Brainchip to the Nasdaq and in incremental steps the foundations are being laid down to facilitate this when the time is right. My personal opinion is that the plan presently is looking at 2 to 3 years for this to occur as a joint listing. Why do I say this time line well it is not extremely scientific but there are criteria regarding earnings, shares on issue and share price that need to be met and if you look at the time line presented by Peter van der Made at the last AGM regarding income growth end of 2023 all going as planned will be the first point where Brainchip is likely to achieve these three criteria or start to confidently approach them.

In all my discussions with the company it takes a very conservative view regarding growth and share price so it could hit these points before end 2023. My mate Blind Freddie does not discount this occurring particularly if one of the glamour signings we long for occurs sooner than later and is disclosed to the ASX.

Despite being here my forward estimate remains at least $2.75 end of 2022 but this could easily be blown out of the water after what we experienced with the Mercedes validation of the technology. It takes little imagination to put a figure of $5.00 on the effect that a full blown commercial agreement announcement with Mercedes would cause.

My opinion only DYOR
FF

AKIDA BALLISTA

I could not agree more. The path is clear and the progress is measured, well planned and being brilliantly executed.

 

[TechGirl]

For what it is worth Brainchip has a very detailed strategic plan going back to when Mr. Dinardo and Ms. Julie Stein were working at full capacity. I have a vision of Mr. Dinardo at the AGM in 2018 speaking to shareholders in attendance and almost as if he was thinking aloud spoke about what a great strategic thinker Ms. Julie Stein was and a huge asset to Brainchip. Without labouring the point it was Mr. Dinardo who following these musings who guided Brainchip to the edge and focused all its scarce resources on producing the AKIDA technology for deployment at the edge. On more than one occasion in his webinars where he disclosed obliquely the many relationships that we now count as certainties and in answering questions about a possible Nasdaq listing never discounted that as an idea.

It is clear to me that the medium term plan is to take Brainchip to the Nasdaq and in incremental steps the foundations are being laid down to facilitate this when the time is right. My personal opinion is that the plan presently is looking at 2 to 3 years for this to occur as a joint listing. Why do I say this time line well it is not extremely scientific but there are criteria regarding earnings, shares on issue and share price that need to be met and if you look at the time line presented by Peter van der Made at the last AGM regarding income growth end of 2023 all going as planned will be the first point where Brainchip is likely to achieve these three criteria or start to confidently approach them.

In all my discussions with the company it takes a very conservative view regarding growth and share price so it could hit these points before end 2023. My mate Blind Freddie does not discount this occurring particularly if one of the glamour signings we long for occurs sooner than later and is disclosed to the ASX.

Despite being here my forward estimate remains at least $2.75 end of 2022 but this could easily be blown out of the water after what we experienced with the Mercedes validation of the technology. It takes little imagination to put a figure of $5.00 on the effect that a full blown commercial agreement announcement with Mercedes would cause.

My opinion only DYOR
FF

AKIDA BALLISTA

Thanks FF, always appreciate your breakdowns & the effort you put in in helping the rest of us understand our investment decisions

 

[KKFoo]

I just had a listen to Sean's presentation - and the confidence he spoke with looks like Mercedes has already signed the dotted line. He also states that Mercedes have vaildated us.... Good time ahead

Hi Reuben, do you have the link to Sean's presentation? Thanks in advance..

 

[KKFoo]

Hi Reuben, do you have the link to Sean's presentation? Thanks in advance..

Ok I have found the link,

Small Cap Growth Virtual Investor Conference | Virtual Investor Conferences

The Investor Relations website contains information about Virtual Investor Conferences's business for stockholders, potential investors, and financial analysts.

www.virtualinvestorconferences.com

 

[dippY22]

The following is the now complete plain English explanation of the importance of the DTC grant.
My opinion only DYOR
FF
AKIDA BALLISTA

"This one was something we put a ton of work into months ago and then Covid killed the DTC! Our application sat there literally for months which was very upsetting and disappointing considering the amount of work and the cost that went into it. But finally it has happened.

There are a few websites that actually explain it all very well which I can forward to you if you haven’t already found them. But if I were to put it into simple terms, I would explain it as follows:

When our shares are traded on the OTCQX, the settling and clearing process is happening on the ASX because we had no access to the automated, electronic, clearinghouse system in the US. Because of this, the number of firms/institutions that could access our shares was very limited and the transaction fees were very expensive. Many of these firms can only deal in the securities of DTC members.

By joining DTC and having the ability to settle and clear locally in USD, and by having a local US based transfer agent (or registry as it’s called there), and without the need to settle and clear on the ASX (CHESS), all DTC member firms and institutions now have easy access to our shares. Previously, if you were to purchase the BRCHF shares, you would likely see an additional fee of up to $55 (USD) tacked on to the cost of your trade to cover the costs of administering these trades. That is no longer the case. I tested it today and noted that the fee to trade was $6.95/trade. With the increase in the number of eligible firms having access to our shares combined with a dramatic decline in transaction fees, we should see increased demand for the shares. It’s all aimed at increasing our exposure in the US. The more places our name pops up, the better!

Last but not least, DTC eligibility is a requirement of all the major exchanges in the US. If the company were to pursue a duel listing at some point in the future, this would be another step in the right direction although the ADR is the perfect instrument for that already.

The sponsor is no secret at all. I worked with a good group of people at a company called MCAP. Here is a link for that… https://www.mcapmarkets.com/. They are also the market maker in our shares and if you ever look at the OTC quotes, you’ll see them there. They used to be the only firm listed but now you will see there are a few more… https://www.otcmarkets.com/stock/BRCHF/overview

Our lead adviser on this project was an Aussie who lives here in California and helps companies attain DTC eligibility. We also worked with an American lawyer who lives in Sydney and is licensed to practice law in both countries which we needed for this project.

I think this website explains it fairly well but there are several. https://www.dtceligibility.com/

Another way to think about it is that if it weren’t for the fact that we are listed on the ASX and have access to the CHESS system, it would be nearly impossible to trade our shares without access to DTC here in the US. Believe it or not, in this country, without access to DTC (or another exchange) broker dealers would have to physically transfer stock certificates to settle trades like it was done decades ago. At least we had the ASX to fall back on and our trades here could be run through custodian accounts there to clear and settle.

View attachment 89

Thanks FF, for pursuing this explanation and shedding some additional color on the matter. Mr. Scarince couldn't have said it clearer .

Seriously, this is great for us Yanks. I trade thru Fidelity and previously it cost me hundreds of dollars to acquire my Brainchip shares. And believe me I was one pissed off guy when rich companies were giving me a trading toll of $50 each direction (but I only bought,..no selling). Especially in this day and age when trading costs to retail clients have all but evaporated. As my mom always told me when growing up, "it's not the amount so much, it's the principal of the thing."

I also believe, like others, that this is another step towards an eventual Nasdaq listing down the road. "When" is anyones guess. However, this company is clicking on all cylinders right now and if they continue to do so we could all be in for a pleasant surprise. dippY, as always.

 

[Diogenese]

View attachment 17

Hi Zeebot,

This thread ran out of steam on Saturday.

Any chance of fitting it with a Mae West so it floats to the top?

I think it would be useful to keep track of progress in the US and the progress to full US listing.

We already have OTCQX Best Market, ADRs and now DTC.

One of the benefits of DTC acceptance is that it allows electronic share transactions and thus makes the share deals much easier.

Does anyone have an inside line to Mellon, who, I'm guessing, are our DTC sponsor and consequently would hold a bundle of shares for sale in US. Let's hope they have to top up frequently.