Seven Arts Entertainment Inc (SAPX)

[Tommy John Surgery]

US over-counter trading tightens reporting, other standards

NEW YORK, March 26 Wed Mar 26, 2014 4:15pm EDT

(Reuters) - OTC Markets, the operator of three U.S. over-the-counter equity markets, is rolling out tighter reporting standards and eligibility requirements for its venture-stage market to crack down on stock scams and bolster transparency, the company said on Wednesday.

On May 1 for its OTCQB market, OTC Markets will introduce a new minimum one-cent bid price requirement and will require the company's chief executive or chief financial officer to certify that its reporting obligations are current and that disclosures about shareholdings, officers and corporate profile are correct.

The bid requirement, in which stocks must have been quoted for at least 1 cent daily over a 30-day period or be dropped from the market, aims to ferret out companies that fall prey to dilutive stock fraud schemes and promotions, OTC Markets said.

OTC Markets also will charge a one-time $2,500 fee for new applicants and an annual $10,000 fee for companies trading on its markets.

Foreign companies that are listed on a qualified stock exchange and are current in their U.S. reporting obligations will be allowed to trade on OTCQB, OTC Markets' middle-tier marketplace. In the past, they traded on the lowest "pink" tier. (Reporting by Herbert Lash)




IMO it sounds as if SAPX may be needing to do another MASSIVE REVERSE SPLIT before May 1, 2014 if it wants to keep it's listing and continue the game called dilution. Only ones going to lose here are investors. Wondering how this will play out?