Spotlight is a marketplace where companies are listed at the beginning of their growth journey. As a result, companies undergo a detailed and meticulous review before being admitted. Leading decision-makers, board members, and shareholders shouldn’t have anything in their background that might undermine public trust in Spotlight and the stock market.
“Trust is crucial, which is why we conduct detailed background checks so that we can make the right decisions,” says Carl-Henrik Nordberg, Head of Listings at Spotlight.
However, young growth companies lack the established track records that more mature businesses have. Ensuring that the company’s intentions are right and that the owners and key executives are above board is therefore vital and something that Spotlight takes very seriously.
“Trust in us and in the stock market is essential, and everything we do is based on our ability to maintain and build trust together. Fledgling companies and high risks make it even more important to ensure executives are well-intentioned and don’t have a background that will damage trust in us, the company, or the stock market.”
When a company applies to be listed, Spotlight checks everyone on the company’s board and senior management team, and everyone with a stake of more than 10 percent.
“A company might be considered unsuitable for listing on Spotlight if it has a leading decision-maker, board member, or owner who has been convicted of a financial crime or been involved in multiple bankruptcies,” says Carl-Henrik Nordberg.
Spotlight employs Look Closer for the deepest checks.
“Spotlight performs due diligence on all the companies that apply for listing to ensure that the company, its leading decision-makers, and major owners meet the stock market’s standards for business health. Using Look Closer gives us a comprehensive description of the person, which is really invaluable as it allows us to make a well-informed decision on whether to list the company. In my opinion, it’s really a top-quality product.”
Have you ever turned down a listing based on the results of such investigations?
“We have indeed, and we wouldn’t have done if we hadn’t had Look Closer’s report. Having sound data has enabled us to terminate deals we didn’t feel were right.”
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