1st step would be pink current- requiring quarterl
Post# of 9144
Posted On: 06/24/2016 10:53:50 PM
1st step would be pink current- requiring quarterly OTC reports and a $4200 fee to OTC for their news disclosure service-this would eliminate 3 major reasons (previously detailed at length) NNLX and most OTC "no info" co's are a target of shorters (ranging from retail to hedge funds) .
Under relatively new politically motivated rules many SEC reporting co's are now listed as pink current simply because they cant meet new politically oriented min bid price of 1c and a 10k surcharge to be listed on OTCQB (the next so called board)
as high as NNLX can list w bid price below 10c-the min for the next level- OTCQX-see below
many SEC reporting co's are now on pinks due to non regulatory OTC's new min bid price rules for OTCQB etc--but many people dont know that -
a lot of big investors can't invest in a non-SEC reporting company- before the OTC's new rules SEC reporting and OTCQB (compared to pinks) were mutually inclusive.
co's have to pay an annual surcharge of 10k to be on the OTCQB now-for the news disclosure service- no real reason for that that I can see- but OTC is a for profit public corporation and they get much of their revenue from the fees they charge co's to list on the pinks,plus OTCQB and OTCQX
the next level after OTCQB would be OTCQX- which is similar (not equal) in many ways qualitatively to big boards and has many foreign blue chips which dont want the hassle of the extra rules and costs of big boards
OTCQX U.S. Requirements
..........
Meet one of the following exemptions, consistent with the definition of a “Penny Stock” under Rule 3a51-1 under the Securities Exchange Act of 1934:
Have a bid price of $5 or more; or
Have net tangible assets of $2,000,000, if the issuer has been in continuous operation for at least three years, or $5,000,000, if the issuer has been in continuous operation for less than three years; or
Have average revenue of at least $6,000,000 for the last three years.
A minimum bid price of $0.10 (for preceding 30 consecutive calendar days)
Under relatively new politically motivated rules many SEC reporting co's are now listed as pink current simply because they cant meet new politically oriented min bid price of 1c and a 10k surcharge to be listed on OTCQB (the next so called board)
as high as NNLX can list w bid price below 10c-the min for the next level- OTCQX-see below
many SEC reporting co's are now on pinks due to non regulatory OTC's new min bid price rules for OTCQB etc--but many people dont know that -
a lot of big investors can't invest in a non-SEC reporting company- before the OTC's new rules SEC reporting and OTCQB (compared to pinks) were mutually inclusive.
co's have to pay an annual surcharge of 10k to be on the OTCQB now-for the news disclosure service- no real reason for that that I can see- but OTC is a for profit public corporation and they get much of their revenue from the fees they charge co's to list on the pinks,plus OTCQB and OTCQX
the next level after OTCQB would be OTCQX- which is similar (not equal) in many ways qualitatively to big boards and has many foreign blue chips which dont want the hassle of the extra rules and costs of big boards
OTCQX U.S. Requirements
..........
Meet one of the following exemptions, consistent with the definition of a “Penny Stock” under Rule 3a51-1 under the Securities Exchange Act of 1934:
Have a bid price of $5 or more; or
Have net tangible assets of $2,000,000, if the issuer has been in continuous operation for at least three years, or $5,000,000, if the issuer has been in continuous operation for less than three years; or
Have average revenue of at least $6,000,000 for the last three years.
A minimum bid price of $0.10 (for preceding 30 consecutive calendar days)
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