As filed with the Securities and Exchange Commission on May 10, 2017
 
Registration No. 333-___________
 

UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
FORM S-3
 
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
 
ISSUER DIRECT CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
 
2750
 
26-1331503
(State or jurisdiction of
 
(Primary Standard Industrial
 
(I.R.S. Employer
incorporation or organization)
 
Classification Code Number)
 
Identification No.)
 
500 Perimeter Park Drive, Suite D
Morrisville, North Carolina 27560
(919) 481-4000
(Address and telephone number of principal executive offices and principal place of business)
 
Copies to:
Jeffrey M. Quick
QUICK LAW GROUP PC
1035 Pearl Street, Suite 403
Boulder, Colorado 80302
Telephone: (720) 259-3393
Facsimile: (303) 845-7315
 
Approximate date of proposed sale to the public: From time to time after the effective date of this registration statement.
 
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
 
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
 
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
 
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☐ 
Smaller reporting company
☒ 
(Do not check if a smaller reporting company)  
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐  
 

 
 
 
CALCULATION OF REGISTRATION FEE
 
 
 
Amount of Shares
 
 
Proposed maximum
 
 
Proposed maximum
 
 
Amount of
 
Title of each class of
 
to be
 
 
offering price
 
 
aggregate
 
 
Registration
 
securities to be registered
 
Registered
 
 
per share
 
 
offering price
 
 
Fee
 
Common Stock
    331,770 (1)  
  $ 11.68 (2)
  $ 3,875,074  
  $ 449.12 (2)
________________
(1)
Represents shares previously issued to Red Oak Partners, LLC, a Delaware limited liability company (“Red "Oak” or the “Selling Stockholder”) and affiliates of Red Oak pursuant to the terms of Securities Purchase Agreement between the Issuer Direct Corporation and Red Oak Partners dated August 22, 2013 (the “8% Note Purchase Agreement”) and the related Convertible Subordinated Secured Promissory Note issued by the Company to Red Oak on August 22, 2013 under the 8% Note Purchase Agreement.
(2)
Calculated in accordance with Rule 457(c) of the Securities Act, based upon the average high and low prices reported on the NYSE MKT exchange on May 5, 2017.
 
We hereby amend this registration statement on such date or dates as may be necessary to delay its effective date until we shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
 
 
 
2
 
 
The information in this prospectus is not complete and may be changed. The Selling Stockholder may not sell these securities until the registration statement is filed with the Securities and Exchange Commission and becomes effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
 
SUBJECT TO COMPLETION, DATED MAY 10, 2017
 
PRELIMINARY PROSPECTUS
 
331,770 SHARES OF COMMON STOCK
 
 
 
ISSUER DIRECT CORPORATION
 
This prospectus relates to the resale of up to 331,770 shares of our common stock, which may be offered by the Selling Stockholder, Red Oak Partners, L.P., a Delaware limited partnership, or Red Oak, as well as certain affiliates of Red Oak set forth on page 9 of this prospectus (the "Selling Stockholder"). The shares of common stock being offered by the Selling Stockholder were issued on November 12, 2014 and August 22, 2015 to the Selling Stockholder upon the conversion of a Convertible Subordinated Secured Promissory Note in the principal amount of $2,500,000 that we issued to Red Oak on August 22, 2013 (the "8% Convertible Note").  The 8% Convertible Note was issued to Red Oak pursuant to the terms of a Securities Purchase Agreement between the Company and Red Oak dated August 22, 2013 (the “8% Note Purchase Agreement”).
 
We are not selling any securities under this prospectus and will not receive any of the proceeds from the resale of shares of our common stock by the Selling Stockholder under this prospectus, however, we have received gross proceeds of $2,500,000 from the sale of the 8% Convertible Note to Red Oak on August 22, 2013.
 
The Selling Stockholder may offer all or part of the shares for resale from time to time through public or private transactions, at either prevailing market prices or at privately negotiated prices. We provide more information about how the Selling Stockholder may sell its shares of common stock in the section titled “Plan of Distribution” on page 10. We will pay the expenses incurred in connection with the offering described in this prospectus, with the exception of brokerage expenses, fees, discounts and commissions, which will be paid by the Selling Stockholder. With respect to the shares of Common Stock that have been and may be issued pursuant to the 8% Note Purchase Agreement, the Seller Stockholders are an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended, (the "Securities Act") and with respect to any other shares of common stock, the Selling Stockholder may be deemed to be an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act.
 
Our common stock is quoted on the NYSE MKT, under the symbol “ISDR”. The last reported sale price of our common stock on the NYSE MKT on May 5, 2017 was $11.70 per share.

Investing in our common stock involves a high degree of risk. Please see the sections entitled “Risk Factors” on page 8 of this prospectus and in the documents incorporated by reference in this prospectus
 
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
 
The date of this prospectus is [_________], 2017.
 
 
 
3
 
 
TABLE OF CONTENTS
 
 
 
Page
PART I - INFORMATION REQUIRED IN PROSPECTUS
 
 
 
PROSPECTUS SUMMARY
 
6
RISK FACTORS
 
8
FORWARD-LOOKING STATEMENTS
 
8
USE OF PROCEEDS
 
9
SELLING STOCKHOLDER
 
9
PLAN OF DISTRIBUTION
 
10
DESCRIPTION OF SECURITIES TO BE REGISTERED
 
12
LEGAL MATTERS
 
13
EXPERTS
 
13
WHERE YOU CAN FIND MORE INFORMATION
 
13
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
 
13
 
 
 
 
 
 
 
4
 
 
ABOUT THIS PROSPECTUS
 
This prospectus is a part of a registration statement that we filed with the Securities and Exchange Commission, or the SEC, utilizing a “shelf” registration process. Under this shelf registration process, certain Selling Stockholder may from time to time sell the shares of common stock described in this prospectus in one or more offerings.
 
We have not authorized anyone to give any information or to make any representation other than those contained or incorporated by reference in this prospectus. You must not rely upon any information or representation not contained or incorporated by reference in this prospectus. The Selling Stockholder are offering to sell, and seeking offers to buy, shares of our common stock only in jurisdictions where it is lawful to do so. This prospectus does not constitute an offer to sell or the solicitation of an offer to buy any shares other than the registered shares to which they relate, nor does this prospectus constitute an offer to sell or the solicitation of an offer to buy shares in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. You should not assume that the information contained in this prospectus is accurate on any date subsequent to the date set forth on the front of the document or that any information we have incorporated by reference is correct on any date subsequent to the date of the document incorporated by reference, even though this prospectus is delivered or shares are sold on a later date.
 
You should read this prospectus together with the additional information described under the headings “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.”
 
 
5
 
 
 
PROSPECTUS SUMMARY
 
This summary description about us and our business highlights selected information contained elsewhere in this prospectus or incorporated in this prospectus by reference. This summary does not contain all of the information you should consider before investing in our common stock. You should carefully read this entire prospectus, including each of the documents incorporated herein by reference, before making an investment decision. Unless the context indicates or suggests otherwise, references to “we,” “our,” “us,” the “Company,” or the “Registrant” refer to Issuer Direct Corporation, a Delaware corporation.
 
Issuer Direct Corporation
 
Overview
 
Issuer Direct is a market leader and innovator of disclosure management solutions, shareholder communications tools and cloud–based compliance technologies. We alleviate the complexity of maintaining compliance with our integrated portfolio of products and services that enhance companies' ability to efficiently produce and distribute their financial and business communications both online and in print.  The Company’s core technology, Platform id. (formerly our Disclosure Management System, or DMS) – is a secure cloud-based communications and compliance system for corporate issuers, mutual funds, and compliance professionals.
 
We work with a diverse client base in the financial services industry, including brokerage firms, banks and mutual funds.  We also sell products and services to corporate issuers, professional firms, such as investor relations and public relations, and the accounting and the legal communities. Corporate issuers and their constituents utilize our cloud-based platforms and related services from document creation all the way to dissemination to regulatory bodies, platforms and shareholders.
 
Company Overview
 
Issuer Direct Corporation (Issuer Direct Corporation and its subsidiaries are hereinafter collectively referred to as “Issuer Direct”, the “Company”, “We” or “Our” unless otherwise noted). We are a Delaware corporation formed in October 1988 under the name Docucon Incorporated. In December 2007, we changed our name to Issuer Direct Corporation. Our corporate offices are located at 500 Perimeter Park Drive, Suite D, Morrisville, North Carolina, 27560.
 
Summary of Private Placement
 
On August 22, 2013, in connection with and to partially fund the acquisition and simultaneously with our acquisition of PrecisionIR, Inc. on the same date, the Company entered into a Securities Purchase Agreement (the “8% Note Purchase Agreement”) relating to the sale of $2,500,000 aggregate principal amount of the Company’s 8% convertible secured promissory note (“8% Convertible Note”) with Red Oak Partners, LLC (“Red Oak” or the “Selling Stockholder”). The 8% Convertible Note paid interest on each of March 31, June 30, September 30, and December 31, beginning on September 30, 2013, at a rate of 8% per year. The maturity date of the 8% Convertible Note was August 22, 2015. On November 10, 2014, Red Oak assigned the 8% Convertible Note between the Red Oak Fund, LP; Pinnacle Opportunities, LP; and the Red Oak Long Fund, LP; all of which are under management by Red Oak.
 
Beginning immediately upon the date of issuance, Red Oak or its assignees had the right to convert the 8% Convertible Note into shares of the Company’s common stock at a conversion price of $3.99 per share. On November 12, 2014, Red Oak converted $833,327 of principal and $23,369 of accrued interest payable on the 8% Convertible Note into 214,710 shares of the Company’s common stock at the conversion price of $3.99. Following this transaction, the principal balance of the note was $1,666,673. Effective August 22, 2015, upon the maturity of the 8% Convertible Note, Red Oak converted the remaining $1,666,673 of principal into 417,712 shares of the Company’s common stock at the conversion price of $3.99.
 
6
 
 
THE OFFERING
 
Selling Stockholder
 
The Selling Stockholder is Red Oak Partners, LLC (“Red Oak”), including certain affiliated entities of Red Oak.
 
 
 
Common stock offered by Selling Stockholder
 
331,770 shares of common stock that we issued to the Selling Stockholder on November 12, 2014 and August 22, 2015 under the 8% Convertible Note.
 
 
 
 
Use of proceeds
 
We will not receive any proceeds from the sale of shares by the Selling Stockholder. However, we previously received gross proceeds of $2,500,000 on August 22, 2013 from the sale of the 8% Convertible Note to Red Oak.
 
 
 
 
NYSE MKT Trading Symbol
 
ISDR
 
 
 
 
Risk Factors
 
The common stock offered hereby involves a high degree of risk and should not be purchased by investors who cannot afford the loss of their entire investment. See “Risk Factors.”
 
 
 
 
 
7
 
 
 RISK FACTORS
 
An investment in our common stock involves a high degree of risk. Prior to making a decision about investing in our common stock, you should carefully consider the risks, uncertainties and assumptions discussed under Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as updated by our subsequent filings with the Securities and Exchange Commission, or the SEC, under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are incorporated herein by reference, together with the information in this prospectus and any other information incorporated by reference into this prospectus. See the sections of this prospectus entitled “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.” Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our business, financial condition or results of operations. The occurrence of any of these known or unknown risks might cause you to lose all or part of your investment in our common stock.
 
FORWARD-LOOKING STATEMENTS
 
This prospectus and the information and documents incorporated by reference in this prospectus contain certain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.
 
Any or all of our forward-looking statements included or incorporated by reference in this prospectus may turn out to be wrong. They can be affected by inaccurate assumptions by known or unknown risks and uncertainties. Many factors mentioned in our discussion included or incorporated by reference in this prospectus will be important in determining future results. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially from expected results.
 
We also provide a cautionary discussion of risks and uncertainties under “Risk Factors” in this prospectus. Other factors besides those discussed could also adversely affect us.
 
Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “estimate,” “may,” “will,” “should,” “could,” “would,” “seek,” “intend,” “continue,” “project,” and similar expressions are intended to identify forward-looking statements. There are a number of factors and uncertainties that could cause actual events or results to differ materially from those indicated by such forward-looking statements, many of which are beyond our control, including the factors discussed under “Risk Factors” herein. In addition, the forward-looking statements contained herein represent our estimate only as of the date of this prospectus and should not be relied upon as representing our estimate as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
 
 
 
8
 
 
USE OF PROCEEDS
 
Selling Stockholder may sell all of the common stock offered by this Prospectus from time-to-time. We will not receive any proceeds from the sale of those shares of common stock. The Selling Stockholder will receive all of the proceeds from this offering. We have, however, received gross proceeds of $2,500,000 from the sale of the 8% Convertible Note to Red Oak.
 
We have agreed to pay all costs, expenses and fees relating to the registration of the shares of our common stock covered by this prospectus. The Selling Stockholder will pay any brokerage commissions and/or similar charges incurred in connection with the sale or other disposition by them of the shares covered hereby.
 
SELLING STOCKHOLDER
 
This prospectus relates to the possible resale from time to time by the Selling Stockholder of any or all of the shares of common stock that have been or may be issued by us to Red Oak under the 8% Note Purchase Agreement and upon conversion of the 8% Convertible Note. We are registering the shares of common stock pursuant to the provisions of the 8% Note Purchase Agreement we entered into with Red Oak on August 22, 2013, in order to permit the Selling Stockholder to offer the shares for resale from time to time. Except for the transactions contemplated by the 8% Convertible Note and the8% Note Purchase Agreement, Red Oak has not had any material relationship with us within the past three years, except that on August 22, 2013, Mr. Sandberg, the managing partner of Red Oak, became a member of our Board of Directors. Mr. Sandberg resigned as a member of our Board of Directors on August 18, 2016.
 
The table below presents information regarding the Selling Stockholder and the shares of common stock that it may offer from time to time under this prospectus. This table is prepared based on information supplied to us by the Selling Stockholder, and reflects holdings as of May 5, 2017. As used in this prospectus, the term “Selling Stockholder” means Red Oak and its affiliates. The number of shares in the column “Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus” represents all of the shares of common stock that the Selling Stockholder may offer under this prospectus. The Selling Stockholder may sell some, all or none of its shares in this offering. We do not know how long the Selling Stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholder regarding the sale of any of the shares.
 
 Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of common stock with respect to which the Selling Stockholder has voting and investment power. The percentage of shares of common stock beneficially owned by the Selling Stockholder prior to the offering shown in the table below is based on an aggregate of 2,929,614 shares of our common stock outstanding on May 5, 2017. The fourth column assumes the sale of all of the shares offered by the Selling Stockholder pursuant to this prospectus.
 
 
 
 
Number of Shares of Common Stock OwnedPrior to Offering
 
 
Maximum Number of Shares of Common Stock to be Offered Pursuant to this
 
 
Number of Shares of Common StockOwned After Offering
 
Name of Selling Stockholder
 
Number (1)
 
 
Percent (2)
 
 
  Prospectus
 
 
Number (3)
 
 
Percent (2)
 
Red Oak Partners, LLC (4)
    331,770 (5)
    11.32 %
    331,770  
    0  
    0.00 %
___________
 
(1)
This number represents the 331,770 shares of common stock issued to Red Oak under the 8% Convertible Note.
 
(2)
Applicable percentage ownership is based on 2,929,614 shares of our common stock outstanding as of May 5, 2017.
 
(3)
Assumes the sale of all shares being offered pursuant to this prospectus.
 
(4)
The business address of Red Oak Partner, LLC is 150 E. Palmetto Park Road, Suite 800, Boca Raton, Florida 33432. Red Oak’s principal business is that of a private investment firm. We have been advised that David Sandberg is the managing partner of Red Oak and owns voting control of the membership interests in Red Oak, and that Mr. Sandberg has sole power to vote or to direct the vote and sole power to dispose or to direct the disposition of all securities owned directly by Red Oak, including the securities held by the Red Oak Fund, the Red Oak Long Fund and the Pinnacle Fund, as defined in footnote 5 below.
 
(5)
Includes (i) 133,648 shares of common stock held by The Red Oak Fund, L.P. (the “Red Oak Fund”), (ii) 58,756 shares of common stock held by The Red Oak Long Fund, L.P. (the “Red Oak Long Fund”) and (iii) 139,366 shares of common stock held by Pinnacle Capital Partners, LLC and Pinnacle Opportunities Fund LP (collectively, the “Pinnacle Fund”). Each of the Red Oak Fund, the Red Oak Long Fund and the Pinnacle Fund are managed by Red Oak.
 
 
9
 
 
PLAN OF DISTRIBUTION
 
We are registering shares of common stock that have been or may be issued by us from time to time to Red Oak under the 8% Note Purchase Agreement and upon conversion of the 8% Convertible Note to permit the resale of these shares of common stock after the issuance thereof by the Selling Stockholder from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the Selling Stockholder of the shares of common stock. We will bear all fees and expenses incident to our obligation to register the shares of common stock.
 
The Selling Stockholder may decide not to sell any shares of common stock. The Selling Stockholder may sell all or a portion of the shares of common stock beneficially owned by it and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the Selling Stockholder and/or the purchasers of the shares of common stock for whom they may act as agent. In effecting sales, broker-dealers that are engaged by the Selling Stockholder may arrange for other broker-dealers to participate. With respect to the shares of common stock that have been and may be issued pursuant to the 8% Note Purchase Agreement, Red Oak is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act, and with respect to any other shares of common stock, Red Oak may be deemed to be an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act. Any brokers, dealers or agents who participate in the distribution of the shares of common stock by the Selling Stockholder may also be deemed to be “underwriters,” and any profits on the sale of the shares of common stock by them and any discounts, commissions or concessions received by any such brokers, dealers or agents may be deemed to be underwriting discounts and commissions under the Securities Act. Red Oak has advised us that it will use an unaffiliated broker-dealer to effectuate all resales of our common stock. To our knowledge, Red Oak has not entered into any agreement, arrangement or understanding with any particular broker-dealer or market maker with respect to the shares of common stock offered hereby, nor do we know the identity of the broker-dealers or market makers that may participate in the resale of the shares. Because Red Oak is (with respect to shares of common stock issued under the 8% Note Purchase Agreement) and may be deemed to be (with respect to any other shares of common stock), and any other Selling Stockholder, broker, dealer or agent may be deemed to be, an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act, Red Oak will (and any other Selling Stockholder, broker, dealer or agent may) be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory liabilities of the Securities Act (including, without limitation, Sections 11, 12 and 17 thereof) and Rule 10b-5 under the Exchange Act.
 
The Selling Stockholder will act independently of us in making decisions with respect to the timing, manner and size of each sale. The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions, pursuant to one or more of the following methods:
 
● 
 on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
 
● 
 in the over-the-counter market in accordance with the rules of NASDAQ;
 
● 
 in transactions otherwise than on these exchanges or systems or in the over-the-counter market;
 
● 
through the writing or settlement of options, whether such options are listed on an options exchange or otherwise;
 
● 
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
 
● 
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
 
● 
 purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
 
● 
 an exchange distribution in accordance with the rules of the applicable exchange;
 
● 
 privately negotiated transactions;
 
● 
 broker-dealers may agree with the Selling Stockholder to sell a specified number of such shares at a stipulated price per share;
 
 
10
 
 
● 
 a combination of any such methods of sale; and
 
● 
 any other method permitted pursuant to applicable law.
 
In addition, the Selling Stockholder may transfer the shares of common stock by other means not described in this prospectus.
 
Any broker-dealer participating in such transactions as agent may receive commissions from the Selling Stockholder (and, if they act as agent for the purchaser of such shares, from such purchaser). Red Oak has informed us that each such broker-dealer will receive commissions from Red Oak which will not exceed customary brokerage commissions. Broker-dealers may agree with the Selling Stockholder to sell a specified number of shares at a stipulated price per share, and, to the extent such a broker-dealer is unable to do so acting as agent for the Selling Stockholder, to purchase as principal any unsold shares at the price required to fulfill the broker-dealer commitment to the Selling Stockholder. Broker-dealers who acquire shares as principal may thereafter resell such shares from time to time in one or more transactions (which may involve crosses and block transactions and which may involve sales to and through other broker-dealers, including transactions of the nature described above and pursuant to the one or more of the methods described above) at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices, and in connection with such resales may pay to or receive from the purchasers of such shares commissions computed as described above. To the extent required under the Securities Act, an amendment to this prospectus or a supplemental prospectus will be filed, disclosing:
 
● 
 the name of any such broker-dealers;
 
● 
 the number of shares involved;
 
● 
 the price at which such shares are to be sold;
 
● 
 the commission paid or discounts or concessions allowed to such broker-dealers, where applicable;
 
● 
that such broker-dealers did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus, as supplemented; and
 
● 
other facts material to the transaction.
 
Red Oak has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock.
 
Under the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.
 
There can be no assurance that the Selling Stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms a part.
 
Underwriters and purchasers that are deemed underwriters under the Securities Act may engage in transactions that stabilize, maintain or otherwise affect the price of the common stock, including the entry of stabilizing bids or syndicate covering transactions or the imposition of penalty bids. The Selling Stockholder and any other person participating in the sale or distribution of the shares of common stock will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder (including, without limitation, Regulation M of the Exchange Act), which may restrict certain activities of, and limit the timing of purchases and sales of any of the shares of common stock by, the Selling Stockholder and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making and certain other activities with respect to the shares of common stock. In addition, the anti-manipulation rules under the Exchange Act may apply to sales of the shares of common stock in the market. All of the foregoing may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common stock.
 
We have agreed to pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $13,949.12 in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “Blue Sky” laws; provided, however, Red Oak will pay all selling commissions, concessions and discounts, and other amounts payable to underwriters, dealers or agents, if any, as well as transfer taxes and certain other expenses associated with the sale of the shares of common stock. We have agreed to indemnify Red Oak and certain other persons against certain liabilities in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Red Oak has agreed to indemnify us against liabilities under the Securities Act that may arise from any written information furnished to us by Red Oak specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.
 
At any time a particular offer of the shares of common stock is made by the Selling Stockholder, a revised prospectus or prospectus supplement, if required, will be distributed. Such prospectus supplement or post-effective amendment will be filed with the Commission to reflect the disclosure of any required additional information with respect to the distribution of the shares of common stock. We may suspend the sale of shares by the Selling Stockholder pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to be supplemented or amended to include additional material information.
 
 
11
 
 
DESCRIPTION OF CAPITAL STOCK
 
The following description of our capital stock is not complete and may not contain all the information you should consider before investing in our capital stock. This description is summarized from, and qualified in its entirety by reference to, our amended certificate of incorporation and our restated bylaws, which have been publicly filed with the SEC. See “Where You Can Find More Information” and “Incorporation of Certain Information by Reference.”
 
Our authorized capital stock consists of:
 
 
●
 
20,000,000 shares of common stock, $0.001 par value; and
 
●
 
1,000,000 shares of preferred stock, $0.001 par value.
 
Common Stock
 
As of May 5, 2017 , there were 2,929,614 shares of our common stock outstanding.
 
Voting Rights
 
For all matters submitted to a vote of stockholders, each holder of our common stock is entitled to one vote for each share registered in his or her name. Holders of our common stock vote together as a single class. There is no cumulative voting in the election of our directors, which means that, subject to any rights to elect directors that are granted to the holders of any class or series of preferred stock, a plurality of the votes cast at a meeting of stockholders at which a quorum is present is sufficient to elect a director.
 
Dividend Rights
 
Subject to preferential dividend rights of any other class or series of stock, the holders of shares of our common stock are entitled to receive dividends, including dividends of our stock, as and when declared by our board of directors, subject to any limitations applicable by law and to the rights of the holders, if any, of our preferred stock.
 
Liquidation
 
In the event we are liquidated, dissolved or our affairs are wound up, after we pay or make adequate provision for all of our known debts and liabilities, each holder of our common stock will be entitled to share ratably in all assets that remain, subject to any rights that are granted to the holders of any class or series of preferred stock.
 
Other Rights and Preferences
 
Subject to the preferential rights of any other class or series of stock, all shares of our common stock have equal dividend, distribution, liquidation and other rights, and have no preference, appraisal or exchange rights, except for any appraisal rights provided by Delaware law. Furthermore, holders of our common stock have no conversion, sinking fund or redemption rights, or preemptive rights to subscribe for any of our securities. Our amended and restated certificate of incorporation and restated bylaws do not restrict the ability of a holder of our common stock to transfer his or her shares of our common stock.
 
The rights, powers, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of holders of shares of any series of preferred stock which we may designate and issue in the future.
 
Transfer Agent and Registrar
 
The transfer agent for our common stock is Direct Transfer, LLC, which is a wholly-owned subsidiary of the Company.
 
Preferred Stock
 
As of May 5, 2017, there were no shares of our preferred stock outstanding.
 
 
12
 
 
  LEGAL MATTERS
 
The validity of the shares offered by this prospectus will be passed upon by Quick Law Group PC.
 
 EXPERTS
 
The consolidated financial statements of Issuer Direct Corporation appearing in Issuer Direct Corporation’s Annual Report (Form 10-K) for the year ended December 31, 2016 (including the schedule appearing therein), have been audited by Cherry Bekaert LLP, independent registered public accounting firm, as set forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
 
WHERE YOU CAN FIND MORE INFORMATION
 
We have filed with the SEC a registration statement on Form S-3 under the Securities Act, of which this prospectus forms a part. The rules and regulations of the SEC allow us to omit from this prospectus certain information included in the registration statement. For further information about us and our securities, you should refer to the registration statement and the exhibits and schedules filed with the registration statement. With respect to the statements contained in this prospectus regarding the contents of any agreement or any other document, in each instance, the statement is qualified in all respects by the complete text of the agreement or document, a copy of which has been filed as an exhibit to the registration statement.
 
We file reports, proxy statements and other information with the SEC under the Exchange Act. You may read and copy this information from the Public Reference Room of the SEC, 100 F Street, N.E., Room 1580, Washington, D.C. 20549, at prescribed rates. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov.
 
 INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
 
The SEC allows us to incorporate by reference into this document the information we have filed with it. This means that we can disclose important business, financial and other information to you by referring you to other documents separately filed with the SEC. The information incorporated by reference is an important part of this prospectus, and information that we file later with the SEC will automatically update and supersede this information. Statements in this prospectus regarding the provisions of certain documents filed with, or incorporated by reference in, the registration statement are not necessarily complete and each statement is qualified in all respects by that reference. Copies of all or any part of the registration statement, including the documents incorporated by reference and the exhibits, may be obtained at the SEC’s public reference room or at the SEC’s website at www.sec.gov or by writing to the SEC and paying a fee for the copying cost. We incorporate by reference the documents listed below:
 
 
●
 
our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 14, 2017, including Amendment No. 1 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on April 28, 2017 and our Quarterly Report on Form 10-Q for the period ended March 31, 2017 filed with the SEC on May 4, 2017;
 
 
●
 
the portions of our Current Reports on Form 8-K that are deemed “filed” with the SEC under the Exchange Act, filed with the SEC on March 2, 2017, May 4, 2017 and May 5, 2017 (except for the information furnished under Items 2.02 or 7.01 and the exhibits furnished thereto); and
  
 
●
 
all documents filed by us pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of offerings under this prospectus, including all such documents we may file with the SEC after the date of the initial registration statement of which this prospectus forms a part and prior to the effectiveness of the registration statement, are deemed to be incorporated by reference into, and to be a part of, this prospectus, except in each case for information contained in any such filing where we indicate that such information is being furnished and is not considered “filed” under the Exchange Act.
 
Any statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference into this prospectus will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or any other subsequently filed document that is deemed to be incorporated by reference into this prospectus modifies or supersedes the statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
 
To receive a free copy of any of the documents incorporated by reference in this prospectus (other than exhibits to the Registration Statement) call or write us at the following address:
 
Issuer Direct Corporation
500 Perimeter Park Drive, Suite D
Morrisville, North Carolina 27560
 (919) 481-4000
Attn: Corporate Secretary
 
 
13
 
 
PART II - INFORMATION NOT REQUIRED IN PROSPECTUS
 
 ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
 
       The following table sets forth the costs and expenses payable by us in connection with the issuance and distribution of the securities being registered hereunder. No expenses will be borne by Selling Stockholder. All of the amounts shown are estimates, except for the SEC registration fee.
 
SEC registration fee
  $  449.12  
Accounting fees and expenses
  $  3,500.00  
Legal fees and expenses
  $  10,000.00  
Total
  $  13,949.12  
 
 ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS
 
        Section 145 of the General Corporation Law of the State of Delaware provides, in general, that a corporation incorporated under the laws of the State of Delaware, as we are, may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than a derivative action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s conduct was unlawful. In the case of a derivative action, a Delaware corporation may indemnify any such person against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification will be made in respect of any claim, issue or matter as to which such person will have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery of the State of Delaware or any other court in which such action was brought determines such person is fairly and reasonably entitled to indemnity for such expenses.
 
        Our certificate of incorporation and bylaws provide that we will indemnify our directors, officers, employees and agents to the extent and in the manner permitted by the provisions of the General Corporation Law of the State of Delaware, as amended from time to time, subject to any permissible expansion or limitation of such indemnification, as may be set forth in any stockholders’ or directors’ resolution or by contract. Any repeal or modification of these provisions approved by our stockholders will be prospective only and will not adversely affect any limitation on the liability of any of our directors or officers existing as of the time of such repeal or modification.
 
       We are also permitted to apply for insurance on behalf of any director, officer, employee or other agent for liability arising out of his actions, whether or not the General Corporation Law of the State of Delaware would permit indemnification.
 
ITEM 16. EXHIBIT INDEX
 
        The following exhibits are included as part of this registration statement by reference:
 
(b) Exhibits
 
Exhibit Number
 
Name
 
 
 
2.1 (1)
 
Agreement and Plan of Merger dated August 22, 2013 with ISDR Acquisition Corp. and Precision IR Group, Inc.
 
Certif icate of Incorporation, as amended*
3.2 (3)
 
Bylaws
 
Quick Law Group PC*
10.1 (1)
 
Securities Purchase Agreement, dated August 22, 2013 with Red Oak Partners, LLC
10.2 (4)
 
Amended and Restated 8% Convertible Subordinated Secured Promissory Note, dated November 13, 2013 issued to Red Oak Partners, LLC
21 (2)
 
List of Subsidiaries
 
Consent of Cherry Bekaert LLP*
23.2
 
Consent of Quick Law Group PC* (included with Exhibit 5.1 herewith)
EX-101.INS
 
XBRL INSTANCE DOCUMENT
EX-101.SCH
 
XBRL TAXONOMY EXTENSION SCHEMA
EX-101.CAL
 
XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
EX-101.DEF
 
XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
EX-101.LAB
 
XBRL TAXONOMY EXTENSION LABEL LINKBASE
EX-101.PRE
 
XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE
 
 
14
 
 
Footnotes to Exhibit Index
 
(1)    Incorporated herein by reference to the Current Report on Form 8-K filed on August 27, 2013.
 
(2)    Incorporated herein by reference to the Form 10-K filed on March 14, 2017.
 
(3)    Incorporated herein by reference to the Current Report on Form 8-K filed on February 12, 2014. 
 
(4)    Incorporated herein by reference to the Current Report on Form 8-K filed on November 15, 2013.
 
*Filed herewith
 
 
ITEM 17. UNDERTAKINGS
 
(a) The undersigned registrant hereby undertakes:
 
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
 
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
 
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or any decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
 
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
 
provided , however , that paragraphs (i), (ii) and (iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
 
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
 
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
 
(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
 
 
15
 
 
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5) or (b)(7) as part of the registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which the prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however , that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
 
(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
 
 
16
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Act of 1933, the registrant duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly and authorized in the City of Morrisville, State of North Carolina on May 10, 2017.
 
 
Issuer Direct Corporation
 
 
 
 
 
 
By:
/s/ Brian R. Balbirnie
 
 
 
Brian R. Balbirnie
 
 
 
Chief Executive Officer and Director
 
 
 
 
 
 
 In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on May 10, 2017.
 
Signature
 
Date
 
Title
 
 
 
 
 
/s/ Brian R. Balbirnie
 
May 10, 2017
 
Director, Chief Executive Officer
Brian R. Balbirnie
 
 
 
(Principal Executive Officer)
 
 
 
 
 
 
 
 
 
 
/s/ Steven Knerr
 
May 10, 2017
 
Chief Financial Officer
Steven Knerr
 
 
 
(Principal Accounting Officer)
 
 
 
 
 
 
 
 
 
 
/s/ Andre Boisvert
 
May 10, 2017
 
Director
Andre Boisvert
 
 
 
 
 
 
 
 
 
 
 
 
 
 
/s/ William Everett
 
May 10, 2017
 
Director
William Everett
 
 
 
 
 
 
 
 
 
 
 
 
 
 
/s/ J. Patrick Galleher
 
May 10, 2017
 
Director
J. Patrick Galleher
 
 
 
 
 
 
 
 
 
 
 
 
17
 
Exhibit 3.1
 
CERTIFICATE OF AMENDMENT
TO
CERTIFICATE OF INCORPORATION
OF
ISSUER DIRECT CORPORATION
 
Issuer Direct Corporation, a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware (the "Corporation"), does hereby certify as follows:
 
1.
That, by unanimous written consent of the Board of Directors of the Corporation on February 9, 2017, resolutions were adopted setting forth a proposed amendment to the Certificate of Incorporation of the Corporation, declaring such amendment to be advisable and to be submitted to a vote of the stockholders.
2.
That, by written consent of a majority of all outstanding shares of stock entitled to vote on the matter dated February 10, 2017, resolutions were adopted approving such amendment to the Certificate of Incorporation.
3.
That the text of the amendment is as follows:
 
Article FOURTH, subsection (a), of the Certificate of Incorporation of the Corporation is hereby amended to read in its entirety as follows:
 
“FOURTH:                      (a)           The total number of shares of all classes of stock which the Corporation is authorized to issue is Twenty-One Million (21,000,000) shares, consisting of One Million (1,000,000) shares of $0.001 par value per share preferred stock (the "Preferred Stock") and Twenty Million (20,000,000) shares of $0.001 par value per share of common stock (the "Common Stock")."
 
IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to be signed by the Chief Executive Officer and the Secretary this 20th day of March, 2017.
 
 
                                                                                                                                                                                                                    ISSUER DIRECT CORPORATION
 
                                                                                                                                                                                                                                    By: /s/ Brian R. Balbirnie
                                                                                                                                                                                                                                    Brian R. Balbirnie
                                                                                                                                                                                                                                    Chief Executive Officer
 
                                                                                            ATTEST
 
                                                                                                    By: /s/ Jeffrey M. Quick
                                                                                                    Jeffrey M. Quick
                                                                                                    Secretary
 
 
 
State of Delaware
Secretary of State
Division of Corporations
Delivered 08:48 AM 03/21/2017
FILED 08:48 AM 03/21/2017
SR  20171883905 · File Number 2175068
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
  Exhibit 5.1
 
 
May 10, 2017
 
Board of Directors
Issuer Direct Corporation
500 Perimeter Park Drive, Suite D
Morrisville, North Carolina 27560
 
Re:
Opinion of Counsel for Registration Statement on Form S-3
 
To Whom It May Concern:
 
We have acted as counsel to Issuer Direct Corporation, a Delaware corporation (the “Company”), in connection with the registration of 331,770 shares of the Company’s common stock (the “Shares”) under the Securities Act of 1933, as amended (the “Securities Act”). The Shares were previously issued pursuant to the terms and conditions of (i) that certain Securities Purchase Agreement, dated August 22, 2013 (the “Purchase Agreement”), by and between the Company and Red Oak Partners, LLC (“Red Oak”) and (ii) that certain Amended and Restated 8% Convertible Subordinated Secured Promissory Note, dated November 13, 2013 (the “Note Agreement”), by and between the Company and Red Oak, as further described in the Company’s registration statement on Form S-3 (the “Registration Statement”) filed under the Securities Act filed with the Securities and Exchange Commission (the “Commission”) on May 10, 2017.
 
For the purpose of rendering this opinion, we examined originals or copies of such documents as deemed to be relevant. In conducting our examination, we assumed, without investigation, the genuineness of all signatures, the legal capacity of all natural persons, the correctness of all certificates, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted as certified or photostatic copies, the authenticity of the originals of such copies, and the accuracy and completeness of all records made available to us by the Company. In addition, in rendering this opinion, we assumed that the Shares will be offered in the manner and on the terms identified or referred to in the Registration Statement, including all amendments thereto.
 
Our opinion is limited solely to matters set forth herein. The law covered by the opinions expressed herein is limited to the Federal Law of the United States and the laws applicable to the State of Delaware.
 
 
Based upon and subject to the foregoing, and assuming that (i) the Registration Statement becomes and remains effective, and the prospectus which is a part of the Registration Statement (the “Prospectus”), and the Prospectus delivery requirements with respect thereto, fulfill all of the requirements of the Securities Act, throughout all periods relevant to the opinion and (ii) all offers and sales of the Shares will be made in compliance with the securities laws of the states having jurisdiction thereof, we are of the opinion that the Shares have been duly authorized by all necessary corporate action of the Company and are legally issued, fully paid and nonassessable.
 
We hereby consent in writing to the reference to this firm under the caption “Legal Matter ” in the Prospectus included in the Registration Statement and the use of our opinion as an exhibit to the Registration Statement and any amendment thereto. By giving such consent, we do not thereby admit that we come within the category of persons where consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission.
 
Very truly yours,
 
/s/ Quick Law Group PC
 
Quick Law Group PC
 
 
  EXHIBIT 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
We hereby consent to the incorporation by reference in this Registration Statement on Form S-3 of Issuer Direct Corporation and subsidiaries (the “Company”) of our report dated March 14, 2017 relating to the consolidated balance sheets as of December 31, 2016 and 2015, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2016 of the Company, which appears in the Company’s annual report on Form 10-K and incorporated by reference herein.
 
/s/ Cherry Bekaert LLP
 
Raleigh, North Carolina May 10, 2017