GrowLife Inc (PHOT)

[SweetPetesS1]

You will find somewhere on the site, the SEC doesn't immediately revoke the registration to still "allow transactions between willing buyers and sellers."

Really to continue to allow liquidity for everyone stuck holding the stock. After some time (around a year) they will put a stop on the security. (Look up the disclosure associated with a "stop")

As far as the company in this hypothetical, it is most likely a shell for fraud and or money laundering. To be halted twice is literally the end for that security. To avoid potential litigation the nameless face behind the corporation, which is probably overseas will stop filing with EDGAR because it is expensive and the scam is not longer viable.

Naturally they will get revoked and deleted as everyone associated with it will try to avoid litigation. The first to receive charges (if the DOJ decides to get involved) will be the market maker who began publicly listing quotes after the first halt.

I strongly refute your assertion concerning otcmarkets.com this is the official website of the OTC. You can go to the SEC website but you will find vague wording to allow for them to make decisions.

One of the broad terms they use is something like " a security cannot be publicly quoted until it satisfies rule 15a-211 or the SEC deems it no longer a public concern.

The OTC website links to the SEC website where you can find all of this info. No where will they spell it out for you. They do no make the details of their decision making process public, to avoid people gaming the system. So they write the Language broadly and let the Free Market do its work.