OTC Bulletin Board- New Quotation Changes on OTCQB. OTC Markets has unveiled changes to be quoted on the OTCQB, which changes become effective May 1, 2014. The OTC Markets changes are designed to attract venture investors to provide more information to investors and to improve such information with Real-Time Level 2 quotes. The OTC Markets press and informational releases related to the change concentrate on the push to create a successful venture-stage marketplace by removing underperforming companies.
Laura Anthony, Esq.
Founding Partner
Legal & Compliance LLC.
330 Clematis Street, Ste. 217
West Palm Beach, FL 33401
Phone:
Toll Free: (800) 341-2684 FREE
Local: (561) 514-0936
Email:
LAnthony@LegalAndCompliance.com
Background
The www.otcmarkets.com divides issuers into three (3) levels: OTCQX, OTCQB and OTC Pink.
Issuers on the OTCQX must be fully reporting and current in their reporting obligations with the SEC and also undergo a quality review by industry professionals. Issuers on the OTCQB must be fully reporting and current in their reporting obligations with the SEC but do not undergo additional quality review.
Issuers on the pinksheets are not required to be reporting with the SEC. However, such issuers are then further qualified based on the level of voluntary information provided to the www.otcmarkets.com. Issuers with no information are denoted by a skull and crossbones, issuers with limited financial and business information are classified as “limited information,” and issuers which provide information as set forth in the OTC Markets Pink Alternative Reporting Standard are denoted with a “current information” symbol.
Effective January 3, 2013, OTC Markets modified its OTC Markets Pink Alternative Reporting Standard for current information status. In particular, it streamlined its disclosure guidelines to align them more closely with the SEC Rule 15c2-11 guidelines, eliminated the requirement for an attorney letter where audited financial statements are provided, and reduced the requirement for attorney letters from every quarter to just once a year upon the filing of an annual report. The prior Pink Alternative Reporting Standard was more analogous to an SEC registration statement than the SEC Rule 15c2-11 guidelines. The streamlined disclosure allowed more companies to provide current information, which weren’t quite ready to provide the type of information required of a company subject to the SEC reporting requirements.
The New OTC Markets OTCQB Eligibility Criteria
To be eligible to be quoted on the OTCQB, companies will be required to:
Meet a minimum bid price of $.01 or be downgraded to OTC Pink;
Submit an application and pay an application and annual fee;
Submit an OTCQB Annual Certification confirming the accuracy of the current company profile and providing information on officers, directors and controlling shareholders.
Laura Anthony, Esq.
Founding Partner
Legal & Compliance LLC.
330 Clematis Street, Ste. 217
West Palm Beach, FL 33401
Phone:
Toll Free: (800) 341-2684 FREE
Local: (561) 514-0936
Email:
LAnthony@LegalAndCompliance.com #LawCast