For companies that are unable or unwilling to main
Post# of 22453
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Posted On: 05/26/2021 11:53:22 AM
Re: Puravida19 #19872
For companies that are unable or unwilling to maintain their current quarterly financial reporting with the SEC, there are Alternate Reporting Standards for the OTC.
These standards require the company to report similar financial data to the OTC on a quarterly basis that QMC is currently required to report to the SEC.
Here is an example of an annual report recently file by Sohm, Inc. to the OTC as part of their effort to regain compliance with the OTC Alternate Reporting Standards and regain their "Pinks Current Information" status.
https://backend.otcmarkets.com/otcapi/company...01/content
https://www.otcmarkets.com/stock/SHMN/disclosure
So QMC could apply to the OTC to use the Alternate Reporting Standards, but they would need to file the financial data/reports for the last seven quarters and have the OTC process their application and the reports. I doubt that would just take a couple of days, maybe a couple of weeks.
The decision to go the Alternate Reporting route does not get QMC off the hook with the SEC. QMC failed to comply with the SEC regulations by not filing quarterly reports on a timely basis for 2 years. The SEC has already started the Administrative process to either suspend QMC trading for up to one year or to possibly revoke QMC's Registration.
If QMC decides to switch to Alternate Reporting on the OTC, then QMC should file a Form 15 and voluntarily terminate its SEC registration status, if it qualifies. If QMC does not file a Form 15, then it is very likely that the SEC will simply revoke their registration and close out the Administrative process, but that will reflect negatively in the future.
The problem with being on the OTC Pinks with Alternate Reporting and no SEC registration is that QMC will not be able to move back up to the OTCQB (requires SEC registration and current SEC periodic reporting) and definitely stops them from uplisting to the NASDAQ.
They could try to re-register their stock with the SEC by filing a Form 10 or an S-1 but the SEC would not just rubberstamp it and may even refuse to even review it for an extended period of time, especially if the SEC had to revoke their previous registration.
These standards require the company to report similar financial data to the OTC on a quarterly basis that QMC is currently required to report to the SEC.
Here is an example of an annual report recently file by Sohm, Inc. to the OTC as part of their effort to regain compliance with the OTC Alternate Reporting Standards and regain their "Pinks Current Information" status.
https://backend.otcmarkets.com/otcapi/company...01/content
https://www.otcmarkets.com/stock/SHMN/disclosure
So QMC could apply to the OTC to use the Alternate Reporting Standards, but they would need to file the financial data/reports for the last seven quarters and have the OTC process their application and the reports. I doubt that would just take a couple of days, maybe a couple of weeks.
The decision to go the Alternate Reporting route does not get QMC off the hook with the SEC. QMC failed to comply with the SEC regulations by not filing quarterly reports on a timely basis for 2 years. The SEC has already started the Administrative process to either suspend QMC trading for up to one year or to possibly revoke QMC's Registration.
If QMC decides to switch to Alternate Reporting on the OTC, then QMC should file a Form 15 and voluntarily terminate its SEC registration status, if it qualifies. If QMC does not file a Form 15, then it is very likely that the SEC will simply revoke their registration and close out the Administrative process, but that will reflect negatively in the future.
The problem with being on the OTC Pinks with Alternate Reporting and no SEC registration is that QMC will not be able to move back up to the OTCQB (requires SEC registration and current SEC periodic reporting) and definitely stops them from uplisting to the NASDAQ.
They could try to re-register their stock with the SEC by filing a Form 10 or an S-1 but the SEC would not just rubberstamp it and may even refuse to even review it for an extended period of time, especially if the SEC had to revoke their previous registration.
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