This is 'IMTC' REPOST What happens when the t

This is 'IMTC' REPOST


What happens when the ten-day suspension period ends?





The SEC will not comment publicly on the status of a company when the ten-day suspension period ends because the company may still have serious legal problems. For instance, the SEC may  continue to investigate a company to determine whether it has defrauded  investors . The public would not know if the SEC is continuing its investigation unless the SEC publicly announces an enforcement action against the company. 
Furthermore,  when an SEC  trading suspension ends, a broker-dealer generally may not solicit investors to buy or sell the previously-suspended over-the-counter (“OTC”) stock until certain requirements are met. Before soliciting quotations or resuming quotations in an OTC stock that has been subject to a trading suspension, a broker-dealer must file a Form 211 with the Financial Industry Regulatory Authority (“FINRA”) representing that it has satisfied all applicable requirements, including those of Rule 15c2-11 and FINRA Rule 6432. 
Among other things, Rule 15c2-11 requires broker-dealers to review and maintain certain documents and information about the company, including in certain cases: 
1. the company’s state of  organization , business line, and names of certain control affiliates; 
2. the title and class of the securities outstanding; and 
3. the company’s most recent  balance sheet and its  profit and loss and retained earnings statement. 
No broker-dealer may solicit or recommend that an investor buy an OTC stock that has been subject to a  trading suspension unless and until FINRA has approved a Form 211 relating to the stock. If there are continuing regulatory concerns about the company, its disclosures, or other factors, such as a pending regulatory investigation, a Form 211  application may not be approved.