Claw from 2014 10-K. It pretty much lays out WMIH's position.
Although WMIHC’s Common Stock is currently quoted on the OTCQB, if we do not meet or comply with the recent rule changes to the OTCQB our shares may be delisted from the OTCQB and would likely be traded on the OTC Pink (aka the Pink Sheets).
Although WMIHC’s common stock is currently quoted on the OTCQB, effective as of May 1, 2014, the OTC Markets Group, Inc. changed its rules for OTCQB eligibility. To be eligible for OTCQB, companies will be required to:
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meet a minimum bid price test of $0.01. Securities that do not meet the minimum bid price test will be downgraded to OTC Pink;
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submit an application to OTCQB and pay an application and annual fee; and
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submit an OTCQB Annual Certification confirming the Company Profile displayed on www.otcmarkets.com is current and complete and providing additional information on officers, directors and controlling shareholders.
Management has not yet determined whether it will submit the required application and pay the associated fees to remain quoted on the OTCQB. In the event we do not submit an application and pay those fees WMIHC’s common stock will likely be downgraded to the OTC Pink, which could adversely affect the market liquidity of WMIHC common stock.
We may be unable to list WMIHC’s common stock on a national securities exchange, which could limit investors’ ability to make transactions in its common stock and subject us to trading restrictions.
Although we will use our reasonable efforts to list our common stock on a national securities exchange after becoming eligible to do so and upon approval of our Board of Directors, there can be no assurance of whether or at what time such listing will occur. In order to list WMIHC’s common stock on a national securities exchange, we will be required to demonstrate compliance with initial listing requirements, including certain financial, distribution and stock price levels. We cannot assure you that we will be able to meet those initial listing requirements.
If we are not able to list WMIHC’s common stock on a national securities exchange, we could face significant material adverse consequences, including:
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a limited availability of market quotations for WMIHC’s common stock;
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reduced liquidity for WMIHC’s common stock;
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a determination that WMIHC’s common stock is a “penny stock” which will require brokers trading in WMIHC’s common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for WMIHC’s common stock;
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a limited amount of news and analyst coverage; and
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a decreased ability to issue additional securities or obtain additional financing in the future.
10
Continuing. (WMIH) BOD authorized and executed required definitive documentation to become OTCQB eligible and is currently in compliance.
Next step is a National Trading Exchange and access to more capital through the reincorporation into Delaware. Keep in mind this is required per the preferred financing contracts.
Last thing. The best way for WMIH to get to a National Exchange is to acquire a company that is already listed there and in compliance. I expect this too occur by that 180 day cut-off date.
Cheers
Blue
GO DUCKS !!!!
