Rising Biosciences Inc (RBII)

[double_m]

Good evening. Not sure if anyone posted this info yet...my apologies if you have. A lot of reading, but answers a lot of questions. Links provided for everything.


Will trading automatically resume after ten days?

It depends on the market where the stock trades. Different rules apply in different markets.

For stocks that are quoted in the OTC market (e.g. stocks quoted on DBOT ATS, Global OTC ATS, and OTC Link ATS, among other venues), quoting does not automatically resume when a ten-day suspension ends. Before OTC stock quoting can resume after a suspension period, SEC regulations require a broker-dealer to review specific information about the company in accordance with Exchange Act Rule 15c2-11 and FINRA Rule 6432. If a broker-dealer does not have confidence that a company's financial statements are reasonably current and accurate in all material respects, especially in light of the questions that may have been raised by the SEC suspension action, then a broker-dealer may not publish a quote for the company's stock. The OTC markets function through dealer systems where only broker-dealers may quote and facilitate trading in OTC stocks.

https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/investor-5


https://www.sec.gov/news/extra/micro15c.txt#:~:text=HOW%20RULE%2015c2%2D11%20WORKS,accurate%20and%20from%20reliable%20sources.

HOW RULE 15c2-11 WORKS NOW: Rule 15c2-11 requires market makers
to review basic issuer information prior to publishing quotations
for that issuer's securities. Market makers must have a
reasonable basis for believing that the information is accurate
and from reliable sources. The Rule describes the kind of
information that the broker-dealer must review.

The problem with the current Rule is that once one market
maker has published quotations for a security for at least 30
days, other market makers can publish quotations for the security
without reviewing any information (i.e., they can "piggyback"
onto the quotes of the first market maker). Market makers then
can quote indefinitely without reviewing any updated information
(unless the Commission suspends trading in the security).

FINRA Rule 6432 – Compliance with the Information Requirements of SEA Rule 15c2-11

Subject to certain exceptions, including the “piggyback exception” discussed below, Rule 6432 requires that all broker-dealers have and maintain certain information on a non-exchange traded company security prior to resuming or initiating a quotation of that security. Generally, a non-exchange traded security is quoted on the OTC Markets. Compliance with the rule is demonstrated by filing a Form 211 with FINRA. Although the rule requires that the Form 211 be filed at least three days prior to initiating a quotation, in reality FINRA reviews and comments on the filing in a back-and-forth process that can take several weeks or even months.

The specific information required to be maintained by the broker-dealer is delineated in Securities Exchange Act (“Securities Act”) Rule 15c2-11. The core principle behind Rule 15c2-11 is that adequate current information be available when a security enters the marketplace. The information required by the Rule includes either: (i) a prospectus filed under the Securities Act of 1933, such as a Form S-1, which went effective less than 90 days prior; (ii) a qualified Regulation A offering circular that was qualified less than 40 days prior; (iii) the company’s most recent annual reported filed under Section 13 or 15(d) of the Exchange Act or under Regulation A and quarterly reports to date; (iv) information published pursuant to Rule 12g3-2(b) for foreign issuers (see HERE); or (v) specified information that is similar to what would be included in items (i) through (iv).

In addition, Rule 6432 requires the submittal of specified information about the security being quoted (for example, common stock, an ADR or warrant), the quotation medium (for example, OTCQB) and if priced, the basis upon which the price was determined.

Rule 6432 requires a certification confirming that the member broker-dealer has not accepted any payment or other consideration in connection with the submittal of the Form 211 application as prohibited by Rule 5250.

Rule 15c2-11(f)(2) allows a member firm to quote or process an unsolicited order on behalf of a customer without compliance with the information requirements. In such case, the member must document the name of the customer, date and time of the unsolicited order and identifying information on the security.

http://lawcast.com/2018/03/20/otc-markets-issues-comment-letters-on-finra-rules-6432-and-5250-the-15c2-11-rules/#:~:text=Subject%20to%20certain%20exceptions%2C%20including,a%20quotation%20of%20that%20security.