Something I'm curious about and maybe this is just

Something I'm curious about and maybe this is just trivial to others. Pretty sure I'm missing something obvious ... if Institutional Investors don't want to or are not allowed to buy otc stock and there's this secondary offering while the company is still trading on otc prior to uplisting what am i missing? Do I.I. make an exception in the case of a company that's already met most of the nasdaq uplisting requirements? Seems like a catch 22 but I know I'm missing some detail that I couldn't find in a search. Are they uplisting and conducting the P.O. on the same day?