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Exhibit 5.1
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QUICK
LAW GROUP PC
1035
PEARL STREET
SUITE
403
BOULDER,
CO 80302
Phone:
720.259.3393
Facsimile:
303.845.7315
August
2, 2018
Issuer
Direct Corporation
500
Perimeter Park Drive
Suite
D
Morrisville,
North Carolina 27560
Re: Issuer
Direct Corporation’s Registration Statement on
Form S-3
Ladies
and Gentlemen:
We have
acted as special counsel to Issuer Direct Corporation, a Delaware
corporation (the “Company”), in connection with its
filing on the date hereof with the Securities and Exchange
Commission (the “Commission”) of a registration
statement on Form S-3 (the “Registration
Statement”), including a base prospectus (the “Base
Prospectus”), which provides that it will be supplemented by
one or more prospectus supplements (each such prospectus
supplement, together with the Base Prospectus, a
“Prospectus”) under the Securities Act of 1933, as
amended (the “Securities Act”) relating to the
registration for issue and sale by the Company of up to $30,000,000
in aggregate principal amount of: (i) shares of the
Company’s common stock, $0.001 par value per share (the
“Common Stock”), which may include shares of Common
Stock issuable upon the conversion and/or exercise of the other
securities included in the Registration Statement, (ii) shares
of the Company’s preferred stock, $0.001 par value per share
(the “Preferred Stock”), which may include shares of
Preferred Stock issuable upon the exercise of the Warrants (as
defined herein) included in the Registration Statement, (iii)
senior debt securities (the
“Senior Debt Securities”), which may be convertible
into or exchangeable for shares of Common Stock and/or Preferred
Stock, to be issued under an indenture to be entered into between
the Company, as issuer, and a trustee (a form of which is included
as Exhibit 4.4 to the Registration Statement) and one or more
board resolutions, supplemental indentures thereto or
officer’s certificates thereunder (such indenture, together
with the applicable board resolution, supplemental indenture or
officer’s certificate pertaining to the applicable series of
Senior Debt Securities, the “Senior Debt Securities
Applicable Indenture”), (iv) subordinated debt
securities (the “Subordinated Debt Securities” and,
together with the Senior Debt Securities, the “Debt
Securities”), which may be convertible into or exchangeable
for shares of Common Stock and/or Preferred Stock, to be issued
under an indenture to be entered into between the Company, as
issuer, and a trustee (a form of which is included as
Exhibit 4.5 to the Registration Statement) and one or more
board resolutions, supplemental indentures thereto or
officer’s certificates thereunder (such indenture, together
with the applicable board resolution, supplemental indenture or
officer’s certificate pertaining to the applicable series of
Subordinated Debt Securities, the “Subordinated Debt
Securities Applicable Indenture” and together with the Senior
Debt Securities Applicable Indenture, the “Applicable
Indenture”), (v) warrants (the
“Warrants”) to purchase Common Stock, Preferred Stock
and/or Debt Securities, which may be issued pursuant to a warrant
agreement (the “Warrant Agreement”) between the Company
and a designated warrant agent (the “Warrant Agent”),
(vi) shares of Common Stock and/or Preferred Stock issuable
upon exercise of the Warrants or upon conversion or exchange of the
Debt Securities, (vii) units comprised of one or more shares
of Common Stock, shares of Preferred Stock, Debt Securities and
Warrants, in any combination (the “Units”), which may
be issued pursuant to a unit agreement (the “Unit
Agreement”) between the Company and a designated unit agent
(the “Unit Agent”) and/or (viii) any combination
of the foregoing securities (collectively, the Common Stock,
Preferred Stock, the Debt Securities, Warrants and Units plus any
additional Debt Securities, Common Stock, Preferred Stock, Warrants
and Units that may be registered pursuant to any subsequent
registration statement that the Company may hereafter file with the
Commission pursuant to Rule 462(b) under the Securities
Act in connection with the offering by the Company contemplated by
the Registration Statement, are collectively referred to herein as
the “Securities”). The Securities may be offered and
sold by the Company from time to time pursuant to Rule 415
under the Securities Act as set forth in the Prospectus, as
supplemented by the various prospectus supplements that may be
filed under the Securities Act after the date hereof. This opinion
is being delivered in accordance with the requirements of Item
601(b)(5) of Regulation S-K under the Securities
Act.
We have
reviewed such records, documents, agreements and certificates, and
examined such questions of law, as we have considered necessary or
appropriate to express the opinions set forth below. In making our
examination of records, documents, agreements and certificates, we
have assumed the authenticity of the same, the correctness of the
information contained therein, the genuineness of all signatures,
the authority of all persons entering and maintaining records or
executing documents, agreements and certificates, and the
conformity to authentic originals of all items submitted to us as
copies (whether certified, conformed, photostatic or by other
electronic means) of records, documents, agreements or
certificates. In rendering our opinions, we have relied as to
factual matters upon certificates of public officials and
certificates and representations of officers of the
Company.
Based
upon and subject to the foregoing and to the other assumptions,
qualifications, limitations and exceptions set forth herein, we are
of the opinion that:
1.
When an issuance of Common Stock has been duly authorized by all
necessary corporate action of the Company, upon issuance, delivery
and payment therefor in an amount not less than the par value
thereof in the manner contemplated by the applicable Prospectus and
by such corporate action, and in total amounts and numbers of
shares that do not exceed the respective total amounts and numbers
of shares (a) available under the Certificate of
Incorporation, as amended, and (b) authorized by the board of
directors in connection with the offering contemplated by the
applicable Prospectus, such shares of Common Stock will be validly
issued, fully paid and nonassessable. In rendering the foregoing
opinion, we have assumed that the Company will comply with all
applicable notice requirements regarding uncertificated shares
provided in the Delaware General Corporation Law.
2.
When a series of Preferred Stock has been duly
established in accordance with the terms of the Company’s
Certificate of Incorporation, as amended and authorized by all
necessary corporate action of the Company, upon issuance, delivery
and payment therefor in an amount not less than the par value
thereof in the manner contemplated by the applicable Prospectus and
by such corporate action, and in total amounts and numbers of
shares that do not exceed the respective total amounts and numbers
of shares (a) available under the Certificate of
Incorporation, as amended, and (b) authorized by the board of
directors in connection with the offering contemplated by the
applicable Prospectus, such shares of such series of Preferred
Stock will be validly issued, fully paid and nonassessable. In
rendering the foregoing opinion, we have assumed that the Company
will comply with all applicable notice requirements regarding
uncertificated shares provided in the Delaware General Corporation
Law.
3.
When the Applicable Indenture has been duly authorized by all
necessary corporate action of the Company and duly executed and
delivered by the Company, and when the specific terms of a
particular series of Debt Securities have been duly established in
accordance with the terms of the Applicable Indenture and
authorized by all necessary corporate action of the Company and
such Debt Securities have been duly executed, authenticated, issued
and delivered against payment therefor in accordance with the terms
of the Applicable Indenture and in the manner contemplated by the
applicable Prospectus and by such corporate action, such Debt
Securities will be legally valid and binding obligations of the
Company, enforceable against the Company in accordance with their
terms.
4.
When the applicable Warrant Agreement has been duly
authorized, executed and delivered by all necessary corporate
action of the Company, and when the specific terms of a particular
issuance of Warrants have been duly established in accordance with
the terms of the applicable warrant agreement and authorized by all
necessary corporate action of the Company, and such Warrants have
been duly executed, authenticated, issued and delivered against
payment therefor in accordance with the terms of the applicable
warrant agreement and in the manner contemplated by the applicable
Prospectus and by such corporate action (assuming the securities
issuable upon exercise of such Warrants have been duly authorized
and reserved for issuance by all necessary corporate action), such
Warrants will be the legally valid and binding obligations of the
Company, enforceable against the Company in accordance with their
terms.
5.
When the applicable Unit Agreement has been duly authorized,
executed and delivered by all necessary corporate action of the
Company, and when the specific terms of a particular issuance of
Units have been duly authorized in accordance with the terms of the
applicable unit agreement and authorized by all necessary corporate
action of the Company, and such Units have been duly executed,
authenticated, issued and delivered against payment therefor in
accordance with the terms of the applicable unit agreement and in
the manner contemplated by the applicable Prospectus and by such
corporate action (assuming the securities issuable upon exercise of
such Units have been duly authorized and reserved for issuance by
all necessary corporate action), such Units will be the legally
valid and binding obligations of the Company, enforceable against
the Company in accordance with their terms.
The
opinions set forth herein are subject to the following assumptions,
qualifications, limitations and exceptions being true and correct
at or before the time of the delivery of any Securities offered
pursuant to the Registration Statement (the “Offered
Securities”):
(i) the Board
of Directors, including any appropriate committee appointed
thereby, and appropriate officers of the Company shall have duly
established the terms of the Offered Securities;
(ii) the
Board of Directors, including any appropriate committee appointed
thereby, and appropriate officers of the Company shall have duly
authorized, and taken any other necessary corporate action to
approve the creation, issuance and sale of, the Offered Securities
and related matters (including without limitation with respect
to offered Preferred Stock, the creation, execution,
acknowledgment and filing of a certificate of designation stating
the number, designation, relative rights, preferences and
limitations of any such offered Preferred Stock in accordance with
the applicable provisions of the corporate laws of the State of
Delaware) and such authorizations and actions have not been
rescinded;
(iii) the
terms of the issuance and sale of the Offered Securities have been
duly established in conformity with the Certificate of
Incorporation, as amended, the amended restated by-laws, and other
similar formation documents of the Company (the “Formation
Documents”) and any other relevant agreement, the Warrant
Agreement and the Unit Agreement (collectively, the
“Applicable Agreements”), so as not to violate any
applicable law, the Formation Documents (subject to the further
assumption that such Formation Documents have not been amended from
the date hereof in a manner that would affect the validity of any
of the opinions rendered herein), or result in a default under or
breach of any agreement or instrument binding upon the Company and
so as to comply with any restriction imposed by any court or
governmental body having jurisdiction over the
Company;
(iv) the
Offered Securities, and any certificates representing the interests
in the relevant Offered Securities, have been duly authenticated,
authorized, executed, countersigned, registered and delivered upon
payment of the agreed-upon legal consideration therefor (in an
amount per share of Common Stock or Preferred Stock, as
appropriate, not less than the par value thereof) and have been
duly issued and sold in accordance with any relevant agreement
(including, but not limited to, any Applicable Agreements), any
underwriting agreement with respect to the Offered Securities or
any other duly authorized, executed and delivered, applicable,
valid and binding purchase agreement, or as otherwise contemplated
by the Registration Statement or any post-effective amendment
thereto, and any prospectus supplement(s) relating
thereto;
(vi) the
Registration Statement, as finally amended (including all necessary
post-effective amendments) and any additional registration
statement filed under the Securities Act will have been declared
effective under the Securities Act and such effectiveness shall not
have been terminated or rescinded;
(vii)
appropriate prospectus supplement(s) shall have been prepared,
delivered and filed in compliance with the Securities Act and the
applicable rules and regulations thereunder describing the
Offered Securities offered thereby;
(viii) the
Offered Securities shall be issued and sold in compliance with all
federal and state securities laws and solely in the manner stated
in the Registration Statement and the applicable prospectus
supplement and there shall not have occurred any change in law
affecting the validity of the opinions rendered
herein;
(ix) if the
Offered Securities will be sold pursuant to a firm commitment
underwritten offering, the underwriting agreement with respect to
the Offered Securities in the form filed as an exhibit to the
Registration Statement or any post-effective amendment thereto, or
incorporated by reference therein, has been duly authorized,
executed and delivered by the Company and the other parties
thereto;
(x) in the
case of an Applicable Agreement or other agreement or instrument
pursuant to which any Offered Securities are to be issued,
(i) each Applicable Agreement will be duly authorized,
executed and delivered by the parties thereto other than the
Company, (ii) that each Applicable Agreement will constitute
legally valid and binding obligations of the parties thereto other
than the Company, enforceable against each of them in accordance
with their respective terms, and (iii) that the status of each
of the Applicable Agreement as legally valid and binding
obligations of the parties will not be affected by any
(a) breaches of, or defaults under, agreements or instruments,
(b) violations of statutes, rules, regulations or court or
governmental orders, or (c) failures to obtain required
consents, approvals or authorizations from, or to make required
registrations, declarations or filings with, governmental
authorities;
(xi) in the
case of an Applicable Agreement or other agreement or instrument
pursuant to which any Offered Securities are to be issued, there
shall be no terms or provisions contained therein which would
affect the validity of any of the opinions rendered herein
and
(xii) in the
case of an Applicable Agreement or other agreement or instrument
pursuant to which any Offered Securities are to be issued, we
have assumed that the laws of the State of Delaware will be chosen
to govern such agreement or instrument and that such choice is a
valid and legal provision.
The
foregoing opinions are based upon and expressly limited to the laws
of the State of Delaware.
Our
opinions are subject to: (i) the effect of bankruptcy,
insolvency, reorganization, preference, fraudulent transfer,
moratorium or other similar laws relating to or affecting the
rights and remedies of creditors; (ii) the effect of general
principles of equity, whether considered in a proceeding in equity
or at law (including the possible unavailability of specific
performance or injunctive relief), concepts of materiality,
reasonableness, good faith and fair dealing, and the discretion of
the court before which a proceeding is brought; (iii) the
invalidity under certain circumstances under law or court decisions
of provisions providing for the indemnification of or contribution
to a party with respect to a liability where such indemnification
or contribution is contrary to public policy; and (iv) we
express no opinion as to (a) any provision for liquidated
damages, default interest, late charges, monetary penalties,
make-whole premiums or other economic remedies to the extent such
provisions are deemed to constitute a penalty, (b) consents
to, or restrictions upon, governing law, jurisdiction, venue,
arbitration, remedies or judicial relief, (c) waivers of
rights or defenses, (d) any provision requiring the payment of
attorneys’ fees, where such payment is contrary to law or
public policy, (e) any provision permitting, upon acceleration
of any Debt Securities, collection of that portion of the stated
principal amount thereof which might be determined to constitute
unearned interest thereon, (f) the creation, validity,
attachment, perfection, or priority of any lien or security
interest, (g) advance waivers of claims, defenses, rights
granted by law, or notice, opportunity for hearing, evidentiary
requirements, statutes of limitation, trial by jury or at law, or
other procedural rights, (h) waivers of broadly or vaguely
stated rights, (i) provisions for exclusivity, election or
accumulation of rights or remedies, (j) provisions authorizing
or validating conclusive or discretionary determinations,
(k) grants of setoff rights, (l) proxies, powers and
trusts, (m) provisions prohibiting, restricting, or requiring
consent to assignment or transfer of any right or property,
(n) any provision to the extent it requires that a claim with
respect to a security denominated in other than U.S. dollars (or a
judgment in respect of such a claim) be converted into U.S. dollars
at a rate of exchange at a particular date, to the extent
applicable law otherwise provides, and (o) the severability,
if invalid, of provisions to the foregoing effect.
We
hereby consent to the filing of this opinion as Exhibit 5.1 to
the Registration Statement and to the reference to this firm under
the caption “Legal Matters.” We further consent to the
incorporation by reference of this letter and consent into any
registration statement or post-effective amendment to the
Registration Statement filed pursuant to
Rule 462(b) under the Securities Act with respect to the
Securities. In giving such consent, we do not thereby admit
that we are in the category of persons whose consent is required
under Section 7 of the Securities Act of 1933, as amended or
under the rules and regulations promulgated by the
Commission.
This
opinion is expressed as of the date hereof, and we disclaim any
undertaking to advise you of any subsequent changes in the facts
stated or assumed herein or of any subsequent changes in applicable
laws, even where the Offered Securities may be issued from time to
time on a delayed or continuous basis.
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Very
truly yours,
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/s/
Quick Law Group PC
Quick
Law Group PC
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