OTC Pink Tier- Today I finish that series with a few points and then move on to the OTC Pink tier of quotation.The OTCQB application fee is $2,500, and the annual fee is $10,000.
Once on the OTCQB, a company may be removed if, at any time, it fails to meet the eligibility and continued quotation requirements subject to a 30-day notice and opportunity to cure. Also, OTC Markets Group may remove the company’s securities from trading on OTCQB immediately and at any time, without notice, if OTC Markets Group, upon its sole and absolute discretion, believes the continued inclusion of the company’s securities would impair the reputation or integrity of OTC Markets Group or be detrimental to the interests of investors.
In addition, OTC Markets can temporarily suspend trading on the OTCQB pending investigation or further due diligence review.
A company may voluntarily withdraw from the OTCQB with 24 hours’ notice.
Now moving on to the OTC Pink level of quotation
The OTC Pink, which includes the highest-risk, highly speculative securities, is further divided into three tiers: Current Information, Limited Information and No Information, based on the level of disclosure and public information made available by the company either through the SEC or posted on OTC Markets. There are no qualitative standards beyond disclosure for OTC Pink companies, which include companies in all stages of development as well as shell and blank check entities.
Companies with Current Information status on OTC Markets include both companies that are subject to and current in their SEC Exchange Act reporting requirements and companies that file current information on OTC Markets in accordance with their Alternative Reporting Standards.
Companies with Limited Information status on OTC Markets are delineated by a “yield” sign and post some financial and basic information on the company on the OTC Markets website, but either do not report to the SEC or do not include enough information to satisfy the Current Information requirements.
Companies with No Information status on OTC Markets are delineated by a “stop” sign and do not provide any current or updated reliable public disclosure.
Companies with a Caveat Emptor designation on OTC Markets are delineated with a skull and crossbones sign. These companies have raised concerns such as improper or misleading disclosures, spam campaigns, questionable stock promotion, investigation of fraudulent or other criminal activity, regulatory suspensions or disruptive corporate actions. #LawCast
