Strake Inc (SRKE)

[Jerry70]

$ VITX. Important info regarding issuer compliance to Rule 15c2-11 by Sept.28, 2021.

Pink Current Information companies have no cause for concern. Some provide adequate disclosure to OTC Markets; others are SEC reporters that, for reasons of cost, choose the Pink Current Info tier over the OTCQB. Pink Limited Information companies will still be quoted as well. OTCM has revised its standards for Pink Limited; the tier now requires the least amount of disclosure needed to qualify as compliant with Rule 15c2-11.

To qualify as Pink Current Info, issuers must supply to OTCM: Annual and quarterly reports prepared according to U.S. GAAP or International Financial Reporting Standards (IFRS), but they need not be audited. The reports must include a balance sheet, statement of income, statement of cash flows, statement of retained earnings (statement of changes in stockholders’ equity), notes, and an audit letter, if applicable. The issuer must also file disclosure information, for which OTCM provides a fillable form.

If the company does not have its financial reports audited, it must hire a qualified attorney to file an “Attorney Letter with Respect to Current Information.” It must also verify its profile through OTCIQ, another service provided by OTC Markets. The profile information must include a complete list of officers, directors, service providers, outstanding shares, a business description, and contact information.

Needless to say, the reports must be provided on an ongoing basis, with quarterlies due within 45 days of the quarter end and annual reports within 90 days of the fiscal year end. Attorney letters must be submitted yearly, within 120 days of the fiscal year end. The company profile must be reviewed and verified every six months.

If a Pink Current Info company fails to do all of the above, it will be demoted to the Pink Limited Information tier. Limited Info companies must provide only an annual report dated within the preceding 16 months. The report must contain the elements required of annual reports for Current Info companies. No attorney letter is required, but the company’s profile must be verified every six months. The annual reports must be supplied on an ongoing basis.

But what of the Pink No Information issuers? And how many are there? OTC Markets itself has said that “approximately 2,800 securities will be removed from the publicly quoted market” on September 28.

https://www.otcmarkets.com/stock/VITX/disclosure