rza, The new OTC requirements state, Compani
Post# of 11899
Posted On: 04/10/2014 12:50:56 AM
rza,
The new OTC requirements state,
"Companies with a March 31 FYE will be the first
group of current OTCQB companies subject to
the new requirements and will be required to
comply with the new OTCQB standards by July
31, 2014."
and
"Meet an ongoing minimum bid price test of $0.01 as of the close of business for at least one of every 30 calendar days."
so RFMK appears to already have been uplisted automatically via becoming fully reporting and getting FINRA approval based upon the existing reporting requirements, therefore once this rule goes into effect "over the course of this year", and beginning May 1 they will already be an existing OTCQB listed stock. This means the requirements for RFMK will be the requirements for stocks which are already existing on the OTCQB; "ongoing".
I believe RFMK FYE reporting period is indeed March 31, therefore they will need to be in compliance with the new standards by July 31. At that time the bid requirement will be in effect, (for the existing and "ongoing" RFMK.OTCQB security) which means that there will need to be a bid of at least $0.01 on the close for at least one day out of a rolling window of 30 days (from then on). If 30 days goes by without a bid at close of at least $0.01 then RFMK will automatically be down-listed to the Pink Sheets.
Note, also, that if the stock were to get downgraded to the Pink Sheets then they would be subject to the new rules once more but as an "initial" company attempting to uplist; "Securities will no longer
be automatically put on OTCQB when a new
Form 211 is cleared by FINRA or an OTC Pink
company becomes current in its reporting",
therefore to uplist at that point to the OTCQB the stock would then need to pass the following requirement,
"meet an initial bid price test of $0.01 as of the close of business for each of the previous 30 calendar days"
All of this also assumes RFMK would meet the "fully reporting" requirements as well as all the listing fees.
So, the CEO will not need to pay any fine after May 1 unless the stock does not meet the bid requirement then gets downlisted then the CEO attempts to move back to the OTCQB via another push to become fully reporting along with the appropriate fees. I personally do not have any idea whatsoever what will happen. It all depends on the "fully reporting" status of the company along with the share price (bid of at least $0.01). There is no way to predict future stock prices so who knows if the bid requirement can be satisfied and for how long in RFMK, it is anyone's guess. Remember though that so long as RFMK retains it's status on OTCQB, the stock only has to reach $0.01 on the close of one day out of the last thirty days from the present time of the test of the bid requirement (the present, current time); it is a rolling time window in the past from the present, though only beginning on May 1. Therefore, from April 1 to May 1, the stock must have had one day at $0.01, which if I am not mistaken, so long as there is not another day close at $0.01 from now until May 1 the stock may be moved to the Pink Sheets because indeed there was a day when the stock closed over $0.01, however it was March 24 and so when May 1 comes, that day will not count towards satisfying the bid requirement. Then again, the stock is currently at about half of one cent per share and so it would need 100% gain to reach one cent, and as I have mentioned for many years, any price can be printed on any given day in the OTC market. The stock prices in OTC land are extremely volatile and so on any given day there is always a chance that the stock could gain 100%; to witness OTC stocks moving up or down 50%, 100% or more is not a big stretch of the imagination.
In my opinion all of the talk about a reverse split is just wild speculation.
Of course, it is always a possibility that management could execute a reverse split to remain on a certain exchange to meet price requirements but this is actually done on NASD and many other exchanges all the time with small and mid cap companies, it is nothing unusual. R/S's are not by themselves proof of anything negative for shareholders at all. It is the dark path, the downward spiral of constant dilution with ongoing R/S's in a particular stock which can cause investors to lose value over time, but an R/S by itself does not mean anything because even though shareholders lose share count, the price moves up to balance the shift and so shareholders do not lose or gain any real value.
Sadly though some paid bashers on certain boards will continue to spin their dark spew and spread fear that somehow an R/S is inevitable and bad, all the while pointing the finger and blame for imaginary negatives at management and imaginary paid company touts which do not exist.
The future is uncertain, difficult to see it is.
GLTY
$RFMK
The new OTC requirements state,
"Companies with a March 31 FYE will be the first
group of current OTCQB companies subject to
the new requirements and will be required to
comply with the new OTCQB standards by July
31, 2014."
and
"Meet an ongoing minimum bid price test of $0.01 as of the close of business for at least one of every 30 calendar days."
so RFMK appears to already have been uplisted automatically via becoming fully reporting and getting FINRA approval based upon the existing reporting requirements, therefore once this rule goes into effect "over the course of this year", and beginning May 1 they will already be an existing OTCQB listed stock. This means the requirements for RFMK will be the requirements for stocks which are already existing on the OTCQB; "ongoing".
I believe RFMK FYE reporting period is indeed March 31, therefore they will need to be in compliance with the new standards by July 31. At that time the bid requirement will be in effect, (for the existing and "ongoing" RFMK.OTCQB security) which means that there will need to be a bid of at least $0.01 on the close for at least one day out of a rolling window of 30 days (from then on). If 30 days goes by without a bid at close of at least $0.01 then RFMK will automatically be down-listed to the Pink Sheets.
Note, also, that if the stock were to get downgraded to the Pink Sheets then they would be subject to the new rules once more but as an "initial" company attempting to uplist; "Securities will no longer
be automatically put on OTCQB when a new
Form 211 is cleared by FINRA or an OTC Pink
company becomes current in its reporting",
therefore to uplist at that point to the OTCQB the stock would then need to pass the following requirement,
"meet an initial bid price test of $0.01 as of the close of business for each of the previous 30 calendar days"
All of this also assumes RFMK would meet the "fully reporting" requirements as well as all the listing fees.
So, the CEO will not need to pay any fine after May 1 unless the stock does not meet the bid requirement then gets downlisted then the CEO attempts to move back to the OTCQB via another push to become fully reporting along with the appropriate fees. I personally do not have any idea whatsoever what will happen. It all depends on the "fully reporting" status of the company along with the share price (bid of at least $0.01). There is no way to predict future stock prices so who knows if the bid requirement can be satisfied and for how long in RFMK, it is anyone's guess. Remember though that so long as RFMK retains it's status on OTCQB, the stock only has to reach $0.01 on the close of one day out of the last thirty days from the present time of the test of the bid requirement (the present, current time); it is a rolling time window in the past from the present, though only beginning on May 1. Therefore, from April 1 to May 1, the stock must have had one day at $0.01, which if I am not mistaken, so long as there is not another day close at $0.01 from now until May 1 the stock may be moved to the Pink Sheets because indeed there was a day when the stock closed over $0.01, however it was March 24 and so when May 1 comes, that day will not count towards satisfying the bid requirement. Then again, the stock is currently at about half of one cent per share and so it would need 100% gain to reach one cent, and as I have mentioned for many years, any price can be printed on any given day in the OTC market. The stock prices in OTC land are extremely volatile and so on any given day there is always a chance that the stock could gain 100%; to witness OTC stocks moving up or down 50%, 100% or more is not a big stretch of the imagination.
In my opinion all of the talk about a reverse split is just wild speculation.
Of course, it is always a possibility that management could execute a reverse split to remain on a certain exchange to meet price requirements but this is actually done on NASD and many other exchanges all the time with small and mid cap companies, it is nothing unusual. R/S's are not by themselves proof of anything negative for shareholders at all. It is the dark path, the downward spiral of constant dilution with ongoing R/S's in a particular stock which can cause investors to lose value over time, but an R/S by itself does not mean anything because even though shareholders lose share count, the price moves up to balance the shift and so shareholders do not lose or gain any real value.
Sadly though some paid bashers on certain boards will continue to spin their dark spew and spread fear that somehow an R/S is inevitable and bad, all the while pointing the finger and blame for imaginary negatives at management and imaginary paid company touts which do not exist.
The future is uncertain, difficult to see it is.
GLTY
$RFMK
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