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OTC MARKETS LISTING REQUIREMENTSHome | Securities Law | OTC Market Compliance | OTC Markets Listing Requirements | OTCQB Listing Requirements
OTCQB LISTING REQUIREMENTS
To be eligible to be quoted on the OTCQB, all companies will be required to:
Meet a minimum closing bid price on OTC Markets of $.01 for each of the last 30 calendar days;
In the event that there is no prior public market and a 15c2-11 application has been submitted to FINRA by a market maker, OTC Markets can waive the bid requirement at its sole discretion;
In the event that a Company is a seasoned public issuer that completed a reverse stock split within 6 months prior to applying to the OTCQB, the Company must have a post reverse split minimum bid price of $.01 at the close of business on each of the 5 consecutive trading days immediately before applying to the OTCQB;
In the event the Company is moving to the OTCQB from the OTCQX, it must have a minimum closing bid price of $.01 for at least one (1) of the 30 calendar days immediately preceding;
Companies may not be subject to bankruptcy or reorganization proceedings the Company’s application;
Either be subject to the reporting requirements of the Securities Exchange Act of 1934 and be current in such reporting obligations or, if an international issuer, be eligible to rely on the registration exemption found in Exchange Act Rule 12g-2(b) and be current and compliant in such requirements or be a bank current in its reporting obligations to its bank regulator;
Not be in bankruptcy or reorganization proceedings;
Be duly organized, validly existing and in good standing under the laws of each jurisdiction in which it is organized and does business;
Submit an application and pay an application and annual fee;
Maintain a current and accurate company profile on the OTC Markets website;
Use an SEC registered transfer agent and authorize the transfer agent to provide information to OTC Markets about the Company securities, including but not limited to, shares authorized, shares issued and outstanding, and share issuance history; and
Submit an OTCQB Annual Certification confirming the accuracy of the current company profile and providing information on officers, directors and controlling shareholders.
All companies are required to post their initial disclosure on the OTC Markets website and make an initial certification. The initial disclosure includes:
Confirmation that the Company is current in its SEC reporting obligations and has filed all reports with the SEC, that all financial statements have been prepared in accordance with U.S. GAAP, and that the auditor opinion is not adverse, disclaimed or qualified;
International Companies – (i) Companies subject to the Exchange Act reporting requirements must be current in such reports; (ii) A company that is not an SEC Reporting Company must be current and fully compliant in its obligations under Exchange Act Rule 12g3-2(b), if applicable, and shall have posted in English through the OTC Disclosure & News Service or an Integrated Newswire, the information required to be made publicly available pursuant to Exchange Act Rule 12g3-2(b) for the preceding 24 months (or from inception if less than 24 months); and all financial statements have been prepared in accordance with U.S. GAAP and that the auditor opinion is not adverse, disclaimed or qualified;
Verification that the Company profile is current, complete and accurate;
All companies will be required to file an initial and annual certification on the OTC Markets website, signed by the CEO and/or CFO, stating:
The company’s reporting standing (i.e., whether SEC reporting, bank reporting or international reporting) and briefly describing the registration status of the company;
If the Company is an International Company and relying on 12g3-2(b), that it is current in such obligations;
That the company is current in its reporting obligations to its regulator and that such information is available either on EDGAR or the OTC Markets website;
States the law firm and/or attorneys that assist the company in preparing its annual report or 10-K;
Confirms that the company profile on the OTC Markets website is current and complete;
Identifies any third-party providers engaged by the Company, its officers, directors or controlling shareholders, during the prior fiscal year and up to the date of the certification, to provide investor relations services, public relations services, stock promotion services or related services;
Confirms the total shares authorized, outstanding and in the public float as of that date; and
Names and shareholdings of all officers and directors and shareholders that beneficially own 5% or more of the total outstanding shares, including beneficial ownership of entity shareholders.
An application to OTCQB can be delayed or denied at OTC Markets’ sole discretion if they determine that admission would be likely to impair the reputation or integrity of OTC Markets Group or be detrimental to the interests of investors.
Requirements for Bank Reporting Companies
Bank reporting companies must meet all the same requirements as all other OTCQB companies except for the SEC reporting requirements. Instead, bank reporting companies are required to post their previous two years’ and ongoing yearly disclosure that was and is filed with the company’s bank regulator, on the OTC Markets website.
International Companies
In addition to the same requirements for all issuers as set forth above, foreign issuers must be listed on a Qualified Foreign Exchange and be compliant with SEC Rule 12g3-2(b). Moreover, a foreign entity must submit a letter of introduction from a qualified PAL which states that the PAL has a reasonable belief that the company is in compliance with SEC Rule 12g3-2(b), is listed on a Qualified Foreign Exchange, and has posted required disclosure on the OTC Markets website. A foreign entity must post two years’ historical and ongoing quarterly and annual reports, in English, on the OTC Markets website which comply with SEC Rule 12g3-2(b).
Ongoing Requirements
U.S. OTCQB companies will be required to remain current in their SEC reporting obligations.
A foreign company that is not an SEC Reporting Company must remain current and fully compliant in its obligations under Exchange Act Rule 12g3-2(b), if applicable, and in any event shall, on an ongoing basis, post in English through the OTC Disclosure & News Service or an Integrated Newswire, the information required to be made publicly available pursuant to Exchange Act Rule 12g3-2(b).
Banks must remain current in their banking reporting requirements;
All OTC Markets posting and reports must be timely filed 45 days following the end of a quarter or 90 days following the end of the fiscal year for US issuers and as soon as practicable but no later than 6 months following the end of the fiscal year end or 60 days following the end of a quarter for International companies; where applicable, file a notice of late filing allowing for 5 extra days on a quarterly report and 15 extra days on an annual report;
All OTCQB companies will be required to post annual certifications on the OTC Markets website;
All companies are required to comply with all federal, state, and international securities laws and must cooperate with all securities regulatory agencies;
Must pay the annual fee;
All companies must respond to OTC Markets inquiries and requests;
All companies must maintain an updated company profile on the OTC Markets website and must submit a Company Update Form at least once every six months;
All Companies must file interim disclosures in the event the Company undergoes a reverse merger or change of control and make new updated certifications and disclosure related to the new business and control persons;
All OTCQB companies must meet the minimum bid price of $.01 per share at the close of business of at least one of the previous thirty (30) consecutive calendar days; in the event that the price falls below $.01, the company will begin a grace period of 180 calendar days to maintain a closing bid price of $.01 for ten consecutive trading days;
Use an SEC registered transfer agent and authorize the transfer agent to provide information to OTC Markets about the Company securities, including but not limited to, shares authorized, shares issued and outstanding, and share issuance history.
Officers and directors of the Company are responsible for compliance with the ongoing requirements and the content of all information. Entities that do not meet the requirements of either OTCQX or OTCQB will be quoted on the OTC Pink.
Fees
Newly applying entities must pay an initial application fee of $2,500, which fee is waived for existing OTCQB entities. All OTCQB companies will be required to pay an annual fee of $10,000.
Removal/Suspension from OTCQB
A company may be removed from the OTCQB if, at any time, it fails to meet the eligibility and continued quotation requirements subject to a 30-day notice and opportunity to address them. In addition, OTC Markets Group may remove the company’s securities from trading on OTCQB immediately and at any time, without notice, if OTC Markets Group, upon its sole and absolute discretion, believes the continued inclusion of the company’s securities would impair the reputation or integrity of OTC Markets Group or be detrimental to the interests of investors.
In addition, OTC Markets can temporarily suspend trading on the OTCQB pending investigation or further due diligence review.
A company may voluntarily withdraw from the OTCQB with 24 hours’ notice.
Inquiries of a technical nature are always encouraged. Contact us now.
OTCQB LISTING REQUIREMENTS
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CONTACT INFORMATION
Laura Anthony, Esq.
Founding Partner
Anthony L.G., PLLC.
625 N. Flagler Drive, Ste, 600,
West Palm Beach, FL
33401
Toll Free: (800) 341-2684
Local: (561) 514-0936
LAnthony@AnthonyPLLC.com
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ABOUT THE FIRM
About Anthony L.G., PLLC
Career Opportunities
The Anthony L.G., PLLC Advantage
Our Attorneys
Corporate and Securities Law
Practice Areas
Notable Transactions
CORPORATE & SECURITIES LAW
General Corporate
Reverse Mergers
Initial Public Offerings
Direct Public Offerings
Private Placement Offerings
Regulation A+ IPO
OTC Market Compliance
NASDAQ Compliance
NYSE Compliance
FINRA Compliance
Blue Sky Compliance
SEC Cybersecurity Disclosures
Cryptocurrency Securities and Initial Coin Offerings (ICO’s)
Distributed Ledger Technology (Blockchain Technology)
Public Shell Companies
PIPE Transactions
Crowdfunding
15c2-11 Application
Mergers and Acquisitions
Rule 144
Smaller Reporting Companies (SRCs) and Emerging Growth Companies (EGCs)
LEGAL RESOURCES
SEC Statues, Rules, Regulations,
and Schedules
Public Company SEC Reporting Requirements
LawCast©
Securities Law Blog
Securities White Papers
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