15-12b filing is beneficial in this situation. It eliminates the time and the very large expense that close to 3 years of audited financials would require.
They will still be an OTC pink stock they will just be alternative reporting instead of SEC reporting. This in NO way effects the trading of the stock. In fact it eliminates the threat of SEC action due to delinquent filings.
The company will still file unaudited financial reports to OTC Markets but it will be much less time consuming and expensive. This frees them up to focus on their business.
Anyone who is not familiar with SEC reporting vs Alternative reporting could already be trading alternative reporting stocks and not even know it. Some of the biggest runners are alternative reporting!
Here is some info on alternative reporting status
Alternative Reporting Standard: When SEC registration is not required, companies must generally still make information publicly available pursuant to Federal securities laws, including Rule 10b-5 under the Exchange Act and pursuant Rule 144(c)(2) under the Securities Act. OTC Markets Group offers the Alternative Reporting Standard for companies who choose to make material information publicly available to investors
OTCQX U.S. and OTCQB companies that do not report to the SEC, U.S. Banking Regulators or a Qualified Foreign Exchange can follow the Alternative Reporting Standard. These companies provide disclosure pursuant to the Alternative Reporting Standard Disclosure Guidelines for OTCQX and OTCQB. This disclosure is available for investors on otcmarkets.com. OTCQX companies are also subject to the eligibility requirements and terms of the OTCQX Rules for U.S. Companies and OTCQB companies are subject to OTCQB Standards. Companies provide current and potential investors with a set of "material" information to help investors make a sound investment decision. This company disclosure enables an investor to understand the companys business operations and prospects
Pink companies may publish disclosure in accordance with the Pink Basic Disclosure Guidelines. These requirements are designed to give an investor the basic information a broker-dealer must maintain under Exchange Act Rule 15c2-11 in order to initiate a quote in a security on the OTCQX, OTCQB or Pink markets. To learn how to upgrade to Pink Current, click here
A Company's Obligations on the OTCQX, OTCQB and Pink Markets
Financial Reporting - Many companies are not subject to SEC registration requirements, and therefore, do not make regular filings of financial information and other corporate events with the SEC. Companies are not required to provide financial information to OTC Markets Group; however in order for investors to make informed trading decisions, many companies elect to provide disclosure. For a detailed explanation of SEC registration and reporting requirements and the exemptions available from those requirements, please see the SEC's Small Business Question and Answer Page
All of my posts are my opinion only and are not meant to be investment advice.
AI
