VANCOUVER, BC / ACCESSWIRE / June 19, 2019 / EastWest Bioscience (the "Company" or "EastWest") (TSX.V: EAST) announces that, further to its News Release on May 7th 2019, it has passed third party due diligence pursuant to FINRA Rule 15c211 ("Form 211"), as part of the Company's DTC application. Form 211 clearance is important as it requires the Directors and Principals of EAST, in addition to the Company itself to pass the regulatory background checks and due diligence necessary to list in the U.S. Form 211 clearance opens the way for EAST to complete the DTC's due diligence and subsequently finalize the Company's application for listing on the OTC Markets QB Exchange.
"DTC approval is important for EAST in its evolution to create liquidity for its existing shareholders by opening the stock to new shareholders in the US. Stock liquidity is the ability (or ease) to buy or sell stocks without affecting the price. This means a stock that trades enough shares for the trader to sell it at any point in time is a liquid stock." states Rodney Gelineau, CEO of EastWest Bioscience.
The Depository Trust Company (DTC) is one of the world's largest securities depositories. Founded in 1973 and based in New York City, the DTC is organized as a limited purpose trust company and provides safekeeping through electronic record-keeping of securities balances. It also acts as a clearinghouse to process and settle trades in corporate and municipal securities.
Most of the country's biggest broker-dealers and banks are DTC participants. That means they deposit and hold securities at the DTC, which appear in the records of an issuer's stock as the sole registered owner of those securities deposited at the DTC. The participants-the banks and the brokers-dealers-own a proportionate interest in the aggregate shares of an issuer held at DTC. Bank X, for example, may contain a proportion of the group of shares of Stock BB that are being held in custody at the DTC.