AI
Wednesday, October 01, 2014 1:18:37 AM
Suspensions vs Halts/Delays in OTC Securities
FINRA dictates trade halts and delays on stocks. The SEC does not impose halts or delays, only suspensions. Regulatory halts and delays are normally imposed only on Exchange-Listed securities. OTC securities are normally only halted because of foreign issuer-related exchange halts (U1). OTC securities are never halted for the dissemination of news. Non-regulatory halts for news dissemination and order imbalances are only imposed on securities trading on exchanges other than NASDAQ. I cannot find one example of an OTC stock being halted for merger news. I cannot find one example of an OTC stock being halted via a U3 code for an extraordinary event that could have a potentially positive effect on the share price (ie: merger).
I believe we will see a Super 8-K with a name and symbol change. Our KEYO shares will be canceled and we will be issued shares in the new company based on the exchange agreement. It won't be 1:1. More likely 1:5...be prepared for that. Yes, it's just like a reverse split, except your reverse-split shares will, this time, actually trade for 500%+! The new company will be eligible, and trade immediately on the NASDAQ National Market. It has to open at at least $5 there! Say, "Goodbye OTC stink!".
§KEYO
FINRA dictates trade halts and delays on stocks. The SEC does not impose halts or delays, only suspensions. Regulatory halts and delays are normally imposed only on Exchange-Listed securities. OTC securities are normally only halted because of foreign issuer-related exchange halts (U1). OTC securities are never halted for the dissemination of news. Non-regulatory halts for news dissemination and order imbalances are only imposed on securities trading on exchanges other than NASDAQ. I cannot find one example of an OTC stock being halted for merger news. I cannot find one example of an OTC stock being halted via a U3 code for an extraordinary event that could have a potentially positive effect on the share price (ie: merger).
I believe we will see a Super 8-K with a name and symbol change. Our KEYO shares will be canceled and we will be issued shares in the new company based on the exchange agreement. It won't be 1:1. More likely 1:5...be prepared for that. Yes, it's just like a reverse split, except your reverse-split shares will, this time, actually trade for 500%+! The new company will be eligible, and trade immediately on the NASDAQ National Market. It has to open at at least $5 there! Say, "Goodbye OTC stink!".
§KEYO
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