OTCMarkets Increases Disclosures of Material Event

OTCMarkets Increases Disclosures of Material Events By Pink Sheet Issuers

In fact, on January 3, 2013, the OTCMarkets significantly increased its disclosure requirements for the OTCMarkets Pink Sheet Current disclosure tier because of the absolute requirement that issuers report a laundry list of corporate events within four days of their occurrence. This requirement is similar to the requirements imposed on SEC reporting issuers to report material events on Form 8-K.

OTCPink Current Reporting

Issuers quoted with the OTCMarkets Pink Current tier, that the issuer must file an annual disclosure statement, which include unaudited financial statements for the most recent two fiscal years and quarterly reports for the interim periods. The January 3, 2013 revised OTCPink Sheet Current requirements are set forth below.

? Issuers quoted with an OTCPink Current tier must give notice of material corporate changes  within four days of the occurrence of the event, a significant change from the prior ten day period.

? Issuers providing financial statements audited by an accounting firm registered with the Public Company Accounting Oversight Board (“PCAOB”) are not required to provide an attorney opinion letter.

? Issuers not providing audited financial statements must file an attorney opinion letter from its securities lawyer for its annual report.

The OTCMarkets Pink Sheet Laundry List

Under OTCMarkets Disclosure Guidelines, corporate events that must be reported include:

? Entry or termination of a material definitive agreement (this includes agreements involving convertible securities);

? Completion of acquisition or disposition of assets including , but not limited to transactions involving reverse mergers;

? Creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of an issuer;

?  Triggering events that accelerate or increase a direct financial obligation or an obligation under an off-balance sheet arrangement;

?  Costs associated with exit or disposal activities;

?  Material Impairments;

?  Sales of equity securities;

?  Material modification to rights of security holders;

? Changes in issuer’s certifying accountant;

?  Non-reliance on previously issued financial statements or a related audit report or completed interim review;

? Changes in control of issuer;

? Departure of directors or principal officers; election of directors or appointment of principal officers;

? Amendments to the issuer’s articles of incorporation or bylaws;

? Changes in the issuer’s fiscal year end;

? Amendments to the issuer’s code of ethics, or waiver of a provision of the foregoing; and

? Other events the issuer considers to be of importance.

More information about SEC Enforcement proceedings can be viewed at:

http://www.sec.gov/litigation/litreleases.shtml

http://www.sec.gov/litigation/admin.shtml
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