Posted On: 04/16/2014 4:33:50 PM
Post# of 8059
We've talked about this before-OTC is NOT a regulatory agency-they are a public for profit company (something they dont advertise, so many think they are regulatory, as they act like it in issuing such decrees and deciding the death or life of co's w their for profit rules)-last I read they received 40% of their revenue from company filings on otcmarkets.com-that % will rise with these new rules as otcs conflict of interest profit motive is probably never too far away in setting such rules
transparency is good but many of the pink co's dont even have net income,which makes it difficult for them to jump through all of otc's rules designed to raise money for otc
since late 2009 there has been a political push to "punish' or eliminate co's w a pps below 1c, (thus dtc games) as brokers hate such companies and regulatory was no longer holding them back as of 2009,so a lot of companies who want to remain on otcqb and can afford to remain on it under higher fees will have to r/s to maintain a pps of 1c
pennytraders are obsessive about r/s because the kind they see usually results from co's w no income who are forced to heavily dilute and thus cannot maintain pps after r/s--that dynamic logically does NOT apply to co's w sufficient net revenue to grow internally,which is the expected case w CWRN- though CWRN could eventually issue shares when pps is high enough to justify doing so (a min of 10c to 1 dollar?) to increase rapidity of growth
Changes to the OTCQB Venture Stage Marketplace
OTC Markets Group is making changes to OTCQB® to make it a better venture stage marketplace. Beginning this year, OTCQB companies will be required to meet new eligibility standards aimed at improving the information available to investors. Companies will be required to meet a new $0.01 bid price test, provide additional information, and submit an annual OTCQB Certification signed by the CEO or CFO. For the first time, International Reporting companies listed on a Qualified Foreign Stock Exchange will be eligible for OTCQB.
Click here to read more about the changes to OTCQB.
transparency is good but many of the pink co's dont even have net income,which makes it difficult for them to jump through all of otc's rules designed to raise money for otc
since late 2009 there has been a political push to "punish' or eliminate co's w a pps below 1c, (thus dtc games) as brokers hate such companies and regulatory was no longer holding them back as of 2009,so a lot of companies who want to remain on otcqb and can afford to remain on it under higher fees will have to r/s to maintain a pps of 1c
pennytraders are obsessive about r/s because the kind they see usually results from co's w no income who are forced to heavily dilute and thus cannot maintain pps after r/s--that dynamic logically does NOT apply to co's w sufficient net revenue to grow internally,which is the expected case w CWRN- though CWRN could eventually issue shares when pps is high enough to justify doing so (a min of 10c to 1 dollar?) to increase rapidity of growth
Changes to the OTCQB Venture Stage Marketplace
OTC Markets Group is making changes to OTCQB® to make it a better venture stage marketplace. Beginning this year, OTCQB companies will be required to meet new eligibility standards aimed at improving the information available to investors. Companies will be required to meet a new $0.01 bid price test, provide additional information, and submit an annual OTCQB Certification signed by the CEO or CFO. For the first time, International Reporting companies listed on a Qualified Foreign Stock Exchange will be eligible for OTCQB.
Click here to read more about the changes to OTCQB.
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