OTC PINK Listing Requirements, Laura Anthony Attorney - YouTube

I’m attorney Laura Anthony founding partner of Legal & Compliance, a full service corporate,

securities, and business transactions law firm.

Today is the first in a LawCast series talking about the OTC pink tier of OTC Markets including

its quotation criteria.

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 through its alternative reporting standard.

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 either choose

not to apply or do not meet all the requirements for a quotation on the OTCQB.

Companies that are voluntary filers with the SEC under the Securities Act and companies

that file current information on OTC Markets in accordance with the OTC Markets Alternative

Reporting Standards.

If the company is subject to and current in their SEC Exchange Act reporting requirements,

they will satisfy the financial reporting requirements for Current Information.

Likewise, companies that voluntarily file reports with the SEC will satisfy the current

information requirements.

If the company is not SEC reporting it must post certain financial information on the

OTC Markets website including annual financial statements, which includes a balance sheet,

income statement, statement of cash flows and notes to the financial statements, for

the previous two years or from inception if the company is less than two years old.

Audits are not required, but if financial statements are audited, the auditor report

must also be posted.

If the company’s financial statements are not audited, an annual Attorney Letter must

be posted within a 120 days of fiscal year end, no attorney letter is required if the

financial statements are audited.

The company profile page on OTC Markets must be maintained current and accurate.

In addition to financial statements, the company must file annual and quarterly reports with

narrative information and CEO and CFO certifications using a fillable form available through OTC

Markets.

The quarterly report and financials must be posted within 45 days of quarter end and the

annual report and financials within 90 days of fiscal year end.

A company must file a Form 8-K if they are SEC reporting or submit a news release within

four days of any of the 8-k triggering events, including for example, entry into a material

agreement; the acquisition or disposition of assets outside the ordinary course of business;

the sale of unregistered securities; and changes in officers, directors, or control shareholders.

In order to maintain current information status.

In addition, to maintain current information, a company must subscribe to the OTC disclosure

and news service called the OTC IQ with an annual fee of 4,200 and a one-time setup fee

of $500.

In the next LawCast in this series, I will discuss the limited information level of the

OTC pig marketplace.

I’m securities attorney Laura Anthony, founding partner of Legal & Compliance, and producer

of LawCast.

Should you have any questions about today’s topic, please visit SecuritiesLawBlog.com

and LawCast.com, or contact me directly.

Inquiries of a technical nature are always encouraged.