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Replies to post #115431 on APT MotoVox Group Inc. (MTVX)
12/20/14 9:15 AM
Earlier this month, the Securities and Exchange Commission (SEC) sanctioned 10 companies for failing to make the required disclosures about financing deals and other unregistered sales that diluted their stock. The SEC reporting companies all failed to file the required Form 8-K disclosure for a stock dilution scenario and several of the companies did not accurately report the stock dilution in subsequent quarterly or annual reports. All companies settled the SEC’s charges and have agreed to pay penalties.
Lack of timely disclosure around a company’s share issuances and total shares outstanding has long been a challenge for investors and brokers trading smaller company shares and is a problem we are working to solve as we make OTCQB a better venture marketplace. As of May 1, all OTCQB companies are required to undergo an annual certification process that provides the names and shareholdings of company officers, directors and beneficial shareholders who own more than 5% of outstanding shares as well as the company’s total shares outstanding and in the public float as of the most recent fiscal year. We contact OTCQB companies’ transfer agents when they join to verify this information and periodically to update the information.
We are currently working with transfer agents to automate this process by enabling them to submit this information by direct data feed, so investors and brokers can access timely share data verified by an SEC registered transfer agent on our website, www.otcmarkets.com, and through our data products.
As of this writing, 201 companies have chosen to comply with the new standards for our OTCQB venture marketplace. These entrepreneurial and development stage public companies have committed to being open and transparent with their investors. We commend them for taking this step to help build more transparency and trust for investors and brokers.
