reference to pinks trading free apparently alludes to the new requirement that otcqb co's pay an annual fee of 10000 to otc just to be listed on otcqb, on top of fees for each doc filed
pink co's pay fees for each doc filed also
100 co's have so far passed the new requirements for listing on otcqb which are being phased in, depending on a co's fiscal year
a lot of previous otcqb co's will be downgraded to pink current- EVEN THOUGH THEY ARE SEC REPORTING- due to failure to meet new 10,000 price for otcqb listing/yr, new min bid price of 1c etc
this will make the otc market even more confusing to the non expert
stated goal as always is to increase transparency
unstated goals:
1) this will imo increase otc's income from these otc fees charged co's from ca 40% of otc's income to ca 50% of otc's income-
many co's who cannot afford the new 10k yearly fee just to be listed on otcqb will drop to pink current as will co's who dont have a 1c pps
2) this is all part of a broker/dtc/otc etc movement to eliminate or penalize co's w a pps below 1c- and will force many co's to r/s to achieve 1c pps to stay on otcqb, just as dtc/brokers now require to remove most kinds of broker dtc restrictions
from
"OTC_Markets
We are thrilled to announce that 100 companies have now been approved for trading on OTCQB®, the venture marketplace for entrepreneurial and development stage companies.
On March 26, 2014, OTC Markets Group announced new standards and eligibility requirements for OTCQB. These new changes were implemented to help companies provide a stronger baseline of transparency for their investors.
To be eligible for OTCQB, companies must be current in their reporting to a U.S. or foreign regulator, pass a minimum bid price test of one penny ($0.01) and undergo an annual verification and management certification process providing additional information about the company’s insiders, advisors and share count. Companies must also not be in bankruptcy or undergoing reorganization and must be approved for trading within 120 days post their Fiscal Year End (FYE).
OTCQB companies also receive access to premium services to help them build visibility and improve transparency for investors, including Real-Time Level 2 quotes
and the OTC Disclosure & News Service
.
OTCQB companies that do not meet these requirements are downgraded to the OTC Pink® open marketplace where they can trade at no cost, with simplified rules while they refinance, reactivate or reinvent their businesses. Highlights of First 100 Verified OTCQB Companies:
30 companies upgraded to OTCQB from OTC Pink
66 were approved to continue trading on OTCQB
9 are non-U.S. companies listed on a qualified foreign venture exchange such as the TSX Venture Exchange and Canadian Securities Exchange
91 are headquartered in the U.S.
One company joined OTCQB from NASDAQ
$11.4 million median market capitalization
Feature a wide variety of industries, including biotechnology, media, technology, mining, oil and gas, food and consumer products
Approximately 2,400 OTCQB companies face deadlines for compliance over the next 10 months with the majority required to comply by May 1, 2015. By July 30, 2015, all OTCQB companies that cannot or choose not to comply with the new standards will be downgraded to OTC Pink.
Click here to view the press release
. For a complete list of the first 100 verified OTCQB companies, click here
.
pink co's pay fees for each doc filed also
100 co's have so far passed the new requirements for listing on otcqb which are being phased in, depending on a co's fiscal year
a lot of previous otcqb co's will be downgraded to pink current- EVEN THOUGH THEY ARE SEC REPORTING- due to failure to meet new 10,000 price for otcqb listing/yr, new min bid price of 1c etc
this will make the otc market even more confusing to the non expert
stated goal as always is to increase transparency
unstated goals:
1) this will imo increase otc's income from these otc fees charged co's from ca 40% of otc's income to ca 50% of otc's income-
many co's who cannot afford the new 10k yearly fee just to be listed on otcqb will drop to pink current as will co's who dont have a 1c pps
2) this is all part of a broker/dtc/otc etc movement to eliminate or penalize co's w a pps below 1c- and will force many co's to r/s to achieve 1c pps to stay on otcqb, just as dtc/brokers now require to remove most kinds of broker dtc restrictions
from
"OTC_Markets
We are thrilled to announce that 100 companies have now been approved for trading on OTCQB®, the venture marketplace for entrepreneurial and development stage companies.
On March 26, 2014, OTC Markets Group announced new standards and eligibility requirements for OTCQB. These new changes were implemented to help companies provide a stronger baseline of transparency for their investors.
To be eligible for OTCQB, companies must be current in their reporting to a U.S. or foreign regulator, pass a minimum bid price test of one penny ($0.01) and undergo an annual verification and management certification process providing additional information about the company’s insiders, advisors and share count. Companies must also not be in bankruptcy or undergoing reorganization and must be approved for trading within 120 days post their Fiscal Year End (FYE).
OTCQB companies also receive access to premium services to help them build visibility and improve transparency for investors, including Real-Time Level 2 quotes
and the OTC Disclosure & News Service
.
OTCQB companies that do not meet these requirements are downgraded to the OTC Pink® open marketplace where they can trade at no cost, with simplified rules while they refinance, reactivate or reinvent their businesses. Highlights of First 100 Verified OTCQB Companies:
30 companies upgraded to OTCQB from OTC Pink
66 were approved to continue trading on OTCQB
9 are non-U.S. companies listed on a qualified foreign venture exchange such as the TSX Venture Exchange and Canadian Securities Exchange
91 are headquartered in the U.S.
One company joined OTCQB from NASDAQ
$11.4 million median market capitalization
Feature a wide variety of industries, including biotechnology, media, technology, mining, oil and gas, food and consumer products
Approximately 2,400 OTCQB companies face deadlines for compliance over the next 10 months with the majority required to comply by May 1, 2015. By July 30, 2015, all OTCQB companies that cannot or choose not to comply with the new standards will be downgraded to OTC Pink.
Click here to view the press release
. For a complete list of the first 100 verified OTCQB companies, click here
.
