Traditional Deals: How It Works

From time to time, other underwriters offer WR Hambrecht + Co shares of traditional IPOs and follow-on offerings. Since the overall allocation and offering prices of such deals are not determined by the OpenIPO auction process, we make an effort to offer these shares to our account holders in as fair a manner as possible.

In these cases, we consider a number of criteria before making a decision on allocation:

• Investment objectives of the account owner
• Trading history of the account
• Asset level of the account (minimum $2k)
• Tenure of the account at WR Hambrecht + Co
• A history of investing in IPOs for the long term

Client Requirements for Traditional Offerings: WRH+Co clients are required to maintain $2,000.00 in assets in their brokerage account to qualify for placing indications of interest in traditional offerings. The required $2,000 asset level will include the aggregate market value of securities held and money market balances across all accounts held by WR Hambrecht + Co under a single social security number. These assets must be present in the account as of the end of the day prior to the submission of an indication of interest.

Please be aware that compliance with the required asset level does not guarantee an allocation of securities, and that WR Hambrecht + Co reserves the right to reject any indication of interest or bid at any time. This minimum asset requirement is for traditional offerings only, and does not affect eligibility for participation in OpenIPO.

At the company’s request, we may offer shares to people who have an established relationship with the company that is going public; this could include important customers, suppliers, business partners or advisors.