Texas Stock Market may not be easy to get onto.
Their requirements are going to be tough.
In a short answer it would be easier for AFFU to up listing to the OTCQB, then up listing to NASDAQ
I would also think competition would spark between NYSE and NASDAQ losing companies going to the new TXSE that NYSE and NASDAQ may ease requirements to get companies to list with them, just an opinion.
https://www.txse.com/
30-40% of Public companies will not qualify for the strict TXSE requirements
Most of Chinese companies will not qualify for the TXSE, i know AFFU is not Chinese.
TXSE is aiming to launch trading in early 2026, with listings expected by the end of that year 1. It's being positioned as a business-friendly alternative to NYSE and Nasdaq, with reduced reporting burdens and a focus on attracting mid- to large-cap companies
As of now, Dell Technologies has not publicly announced plans to list on the Texas Stock Exchange (TSE). However, it's worth noting that the Dell Family Office Management is one of the founding investors backing the TXSE initiative 1. That suggests a strong interest in the exchange's success, even if Dell itself hasn't committed to listing there yet.
TXSE aims to be a tough, institutional-grade alternative to NYSE/Nasdaq, with stricter rules and fresh infrastructure
🛡️ 1. Stringent Financial & Qualitative Thresholds
• Requires earnings tests, minimum price levels, and other robust financial criteria—aiming to exclude penny stocks, shell companies, and issuers with unverifiable financials ?.
• TXSE’s initial and ongoing listing standards are generally tighter than Nasdaq Capital Market’s, and align more closely with those of the NYSE ?.
• CEO James Lee noted that about 35% of the ~4,600 U.S.-listed companies would not qualify to list on TXSE, with many small/mid-caps and foreign issuers falling short ?.
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🧾 2. Governance & Transparency Requirements
• Companies must maintain standing audit committees and a board with independent directors, following SEC-mandated corporate governance standards ?.
• TXSE will require prompt disclosure of material events, ongoing notifications of important occurrences, and shareholder approval for certain actions ?.
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📌 3. Exclusions of Certain Company Types
TXSE explicitly rejects listings from:
• Penny stocks
• Shell companies
• Foreign issuers lacking verifiable finances
• Firms that fail to meet existing exchange standards ? ?
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📋 4. No Listing “Tiers”
• Unlike Nasdaq, TXSE does not use multiple tier structures. Instead, it maintains a single, high-standard threshold for all corporate issuers, comparable to NYSE’s main board ?.
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✔️ 5. Listing Application Materials
Per TXSE’s Form 1 filing, applicants must submit:
• Audited financial statements for the latest fiscal year ?.
• Corporate governance certifications, board composition, and insider shareholding details.
• Rulebook compliance, trading/pricing disclosures, event notification protocols, and listing fee schedules ? ?.
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🔄 6. Transfer & Continued Listing
• The exchange allows transfers from existing national exchanges, but any transferring company must meet TXSE’s strict financial and governance criteria ?.
• Continued listing standards include maintaining minimum share price (e.g., not trading below $1 for 30 days), SEC reporting compliance, and governance standards ?.
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✅ TL;DR
TXSE is positioning itself with no-compromise listing standards:
Area
TXSE Requirement
Financials
Earnings tests, minimum price
Governance
Audit committee, independent directors
Disclosure
Timely material-event reporting
Exclusions
Penny stocks, shells, non-transparent issuers
Tier System
Single, high-standard board—no tiers
📌 Bottom line: If your company is aiming for a TXSE listing, you’ll need solid earnings, a clean financial record, strong governance, and transparent disclosures—essentially meeting NYSE-level thresholds.
In most cases, an OTC-traded stock would not qualify for an uplisting to the new Texas Stock Exchange (TXSE)—at least not without significant upgrades to its financials, governance, and transparency.
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🧾 Why Most OTC Stocks Wouldn’t Qualify for TXSE
TXSE has publicly committed to higher listing standards than the Nasdaq Capital Market, and much higher than OTC Markets. Here’s how OTC companies typically fall short:
Requirement
OTC Companies Often…
TXSE Requirement
Audited Financials
May not have PCAOB-audited financials
Must file audited SEC reports
Corporate Governance
Often no independent board or audit cmte
Must have full board governance
Market Cap / Earnings
Many are <$50M or pre-revenue
Requires substantial earnings or valuation (like NYSE/Nasdaq)
Minimum Share Price
Trade under $5, often <$1
TXSE avoids penny stocks
Disclosure Compliance
May be delinquent or pink sheet
TXSE’s CEO has said:
“About 35% of currently listed U.S. public companies would not qualify to be listed on TXSE.”
That likely includes the vast majority of OTC stocks (source).
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✅ Could an OTC Company Qualify with Changes?
Yes — if the OTC company meets the following upgrade steps, it could become eligible for TXSE:
1. Become fully SEC-reporting (Form 10, 10-K, etc.)
2. Obtain PCAOB-audited financials
3. Meet earnings or net income standards (e.g. $10M–$100M market cap + positive earnings or revenue)
4. Maintain a minimum share price (usually $4 or higher)
5. Adopt NYSE-style corporate governance
6. Have at least 400 round-lot shareholders and public float requirements
Think of TXSE more like NYSE than OTC or even Nasdaq — it’s not for microcaps, shells, or pink sheets.
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🔁 Better Path: Reverse Merger or Reorganization
Some OTC companies may qualify faster via:
• Reverse merger with a TXSE-eligible private company
• Uplisting to Nasdaq first, then transferring to TXSE
• Capital raise + board restructuring + full registration
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🧭 Conclusion
Most OTC stocks cannot go straight to TXSE. But with a legitimate business, strong financials, and proper governance, it’s possible to uplist — though challenging.
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