If a company you've invested in gets delisted from the NYSE or Nasdaq, don't worry! It's likely that it's just moved over to the over-the-counter (OTC) markets.
If this has happened to you, then what this means is that you can no longer buy or sell shares through the Hatch app. The pricing you see in Hatch for that company will no longer update since we don't have a data feed for OTC shares.
Why do companies get delisted?
Currently, shares are removed from the Hatch platform if they fall below our US broker criteria ($1b market capitalisation, share price over $1).
If foreign companies (listed as American Depository Receipts, or ADRs) don't comply with US regulations, then they may be delisted. In May 2020, the US senate passed a bill that would give Chinese companies and their auditors three years to comply with inspector arguments-or face delisting from Nasdaq and NYSE. They could move to be traded only on US over-the-counter (OTC) markets, or potentially barred from trading in the US entirely.
What can I do if I want to sell my shares?
Once a company moves to the OTC markets and you want to sell your shares, you'll need to contact our team and we can help set up the sale. DriveWealth process OTC sales at US market open each day, so if you want to sell your shares please let us know by 3pm NZST, and we can request the sale for the next morning.
If a company is removed from all US exchanges (including the OTC), then you will be able to sell your shares through Hatch up until the day it is delisted. If you still hold shares after the company has been delisted from all US markets, it may be difficult to sell or transfer your shares.
Our broker does not support some types of OTC shares (e.g. Expert Market)
Our broker may not support holding some types of OTC shares. For example, our broker does not support Expert Market OTC shares. In this case, they will give notice of the date they will auto-liquidate your expert market OTC shares. You may also be able to transfer your shares to another broker who will support Expert Market OTC shares. This must be completed before our broker's auto-liquidate date.
Order types available for delisted companies
Just as a heads up! We aren't able to do limit orders or stop-loss orders on OTC shares, so your sale will be processed at the best available price upon market open. The fee for our broker to sell OTC shares are no different to selling any other shares on Hatch.
Since pricing won't update on the Hatch site anymore, you can keep an eye on pricing using handy websites such as Yahoo Finance.
You can reach out to us by email at hello@hatchinvest.nz