Predictive Technology Group Inc (PRED)

[ChasingGains]

Good afternoon to all,

There has been a lot of discussion on this site as to how long it takes for a company to “uplist” the trading of its shares on the NASDAQ Exchange from the OTC Exchange. As I am sure most of you know, there are several different “tiers” on each exchange. More specifically, the OTC Markets are composed companies whose stocks trade on either the Bulletin Board, Pink Sheets, QB or the QX, while the NASDAQ Exchange has three different market “tiers” within their structure. Minimum listing requirements for each of the NASDAQ Exchange tiers differs with respect to such things as: (1) total assets, (2) total revenues, (3) cash flows, (4) market capitalization, (5) number of shareholders, (6) minimum bid price, etc.

According to previous statements from NASDAQ, the “normal” LISTING application takes 4-6 weeks to process, but can be approved faster or slower dependent on the number of questions or comments that NASDAQ processors ask, the timeliness of each company’s responses to said questions or comments or the amount of information that needs to be processed (e.g. the size and structure complexity of the company wanting to list on the NASDAQ Exchange).

PRED is not a “normal” OTC listed company. It is a “Pink Sheet” that trades on one of the lowest tiers of the various OTC markets. More importantly, PRED’s financial status is not representative of a typical Pink Sheet company in that it’s market capitalization is in excess of $ 1 Billion! As I am sure that most of you also know, companies that trade on the “Pink Sheets” are not subjected to the same reporting requirements that companies that are listed on national exchanges (e.g. NASDAQ, NYSE, NYSE-AMEX) are subjected to. As such, many transactions that would normally be required to be reported as “material events” (Form 8K items) by companies that trade on a national exchange, do not have to be disclosed by companies that trade on the OTC Market Exchanges. As such, due to the lack of transparency, the investment community, is generally extremely skeptical when dealing with any company that trades on any of the OTC Market exchanges.

When a company applies to be traded on a national exchange (e.g. NASDAQ, NYSE, NYSE-AMEX), their ability to continue to be “non-transparent” disappears (no pun intended). As a part of the uplisting application approval/denial process, officials at national exchanges want to know EVERYTHING about a company that is applying to trade on their exchange; both previously disclosed AND non-previously disclosed information? Why do they want to know EVERYTHING about an applicant? Because the integrity of the exchange is at risk if they do not conduct adequate due diligence. As stated above, PRED is not your normal Pink Sheet company that is trying to uplift to the NASDAQ Exchange. They are a huge Pink Sheet company (by market capitalization standards) that has layers and layers of affiliated companies, wholly-owned subsidiaries, equity investments in other companies, etc. Moreover, as allowed under the OTC Market rules, the company has intentionally not disclosed many MATERIAL events (Form 8-K items) that would DEFINITELY have to be disclosed if the company’s shares were traded on a national exchange.

By now, I think that you can see where this is going ..... Due to PRED having (1) a substantially larger than normal Pink Sheet market capitalization, (2) a greater than normal number of affiliates, wholly-owned subsidiaries, joint ventures, equity investments, etc., and (3) a history, by design, of not disclosing material events (e.g. acquisitions, research results, 144 offerings, material contracts, (4) joint ventures, etc.), it is not unreasonable to expect that it might take a little longer than “normal” to process their application to uplist the company to the NASDAQ Exchange (e.g. 4-6 weeks). No offense ladies, but as the old saying goes “SIZE MATTERS”; the larger and historically less transparent the company is, the longer it takes for NASDAQ staff to perform adequate due diligence on the applicant. In reality, of you should be happy that the application approval process is taking longer than “normal” because it should give you a greater level of comfort in the quality of your investment knowing that the NASDAQ staff members have turned over every rock and looked in every hidden corner to try and uncover any irregularities that might exist within the company and yet have found none.

In the big scheme of things, it doesn’t really matter whether or not the uplisting occurs next week or six months from now. What does matter is the PRED’s management team continues to build a rock solid company that will be on the cutting edge and at the forefront of technological advances within the medical industry. “Fundamentals” will ultimately decide the direction of the stock price and I personally believe that PRED is positioned for great things in the future and that shareholders will be richly rewarded for the confidence that they placed in the company.

Wishing each of you a great day.




https://listingcenter.nasdaq.com/assets/initialguide.pdf