Replies to post #32180 on Tauriga Sciences Inc (fka TAUG)

[TJG]

My thoughts exactly... Thank you Blackcat...

[loanranger]

"What Delisting Meant to TAUG on JULY 31,2015."

All but one or two words of the discussion in your post date back to at least 2006*. Since that time a listing on the OTCBB has gone from something that seemed important to something that is almost meaningless. Note the change of language:

From 2006 and your post:
"Over the Counter Bulletin Board (OTCBB) - This is an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA, formerly the NASD)."

From FINRA today:
"The OTC Bulletin Board (or OTCBB) is an interdealer quotation system that is used by subscribing FINRA members to reflect market making interest in OTCBB-eligible securities (as defined by FINRA Rule 6530)."**

Market Makers, who once used the OTCBB to exchange quote information and trade, have been asking their issuers to leave the OTCBB (because the MMs have to pay for each issuer quoted) and they have done so in large numbers. Quoting and trading can be done more efficiently in other venues.

Last month there were 20,136 trades made on the OTCBB...there were 2,308,623 trades of OTC stocks (including those of TAUG) in other venues. In July of 2015 that ratio as a little smaller but it still showed that very little trading was being done on the OTCBB "service" from which TAUG was delisted.***

Delisting from the OTCBB on July 31, 2015 didn't mean much at all.


* http://www.vnsmessageboard.com/index.php?topic=1453.0
** http://www.finra.org/industry/otcbb/otc-bulletin-board-otcbb
*** http://otce.finra.org/MSEquityTradingDataMonthly


The terms "OTCBB" and "OTC Bulletin Board" don't appear in Tauriga's Complaint against Cowan, etc.
The Complaint does say "the publicly traded shares of Tauriga were delisted" and asserts that that delisting resulted in damages. Most of the damages attributed to the delisting were general except for the assertion that it "created a potential contractual default between Tauriga and its business associations". If the defendants can be shown liable by their acts, Tauriga would have to show the language in those contracts that required their ongoing listing on the OTCBB.

http://ia601506.us.archive.org/10/items/gov.uscourts.flsd.473469/gov.uscourts.flsd.473469.1.0.pdf


There is a separate issue that appears in certain SEC filings that doesn't appear in the Complaint. That is what the company refers to as its "delisting" from the OTCQB. The OTCQB isn't an exchange on which shares are traded, so the term "listing" doesn't apply to it. But that's a separate discussion.

[Blackcat7717]

What Delisting Meant to TAUG on JULY 31,2015. From the OTCQB TO THE PINK SHEETS. (CORRECTION)NOT OTCBB CORRECT OTCQB

(OTCQB) - This is an electronic trading service offered by the Financial Industry Regulatory Authority (FINRA, formerly the NASD). Companies will trade here if they are current in their financial statements.
Pink Sheets - Considered even riskier than the OTCQB, the pink sheets are a quotation service. They do not require that companies register with the Securities and Exchange Commission (SEC) or remain current in their periodic filings. The stocks on the pink sheets are very speculative.

Delisting doesn't necessarily mean that a company is going to go bankrupt. Just as there are plenty of private companies that survive without the stock market or being listed. It is possible for a company to be delisted and still be profitable. However, delisting can make it more difficult for a company to raise money. For example, delisting may trigger a company's creditors to call in loans, or its credit rating might be further downgraded, increasing its interest expenses and potentially even pushing it into the red.

How Does It Affect You?
If a firm is unable to meet the listing requirements of the OTCQB upon which it is traded and resumes trading in the PINK SHEETS is quite obviously not in a great position. Each case of delisting needs to be looked at on an individual basis.

Even if a company continues to operate successfully after being delisted. People lose their faith in the stock. When a company's stock is demoted to the pink sheets, it loses its reputation.

Another problem for delisted stocks is that many institutional investors are restricted from researching and buying them. Investors who already own a stock prior to the delisting may be forced to sell their investment further depressing the company's share price by increasing the selling supply. This lack of coverage and buying pressure means the stock has an even steeper climb ahead to make it back on the OTCQB.

The Bottom Line
Some argue that delisting is too harsh because it punishes stocks that could still recover. However, allowing such companies to stay listed on the PINK SHEETS would result in the simply diluting the caliber of the companies that trade on them and degrading the respectability of the companies that maintain the listing requirements. Therefore, if a company that you own is delisted, it may not spell inevitable doom, but it is certainly a black mark on that company's reputation and, if your company can recover this would be a great a sign for your investments returns down the road.
THIS IS WHY TAUG WILL WIN A LARGE SETTLEMENT IN BOTH LAWSUITS.
TIC TOC TIC TOC WHAT TO DO
BLACKCAT