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surfkast

10/09/19 10:24 AM

#45403 RE: chemist72 #45402

My .02 is that if the the new rules go into effect as stated, all companies will need current information.

FACT SHEET

Publication or Submission of Quotations Without Specified Information

Proposed Amendments

The Commission proposed amendments to Exchange Act Rule 15c2-11 that are intended to modernize the Rule and better protect retail investors from incidents of fraud and manipulation in over-the-counter (“OTC”) securities. The Rule provides for the publication and submission of quotations by a broker-dealer in a quotation medium for securities that are not listed on a national securities exchange. Prior to submitting or publishing a quotation, a broker-dealer must review certain basic information about an issuer.

The Commission’s proposed amendments would (i) provide greater transparency to investors and other market participants by requiring that information about the issuer and the security be current and publicly available; (ii) limit certain existing exceptions to the Rule to provide greater protections to retail investors; (iii) reduce regulatory burdens on broker-dealers quoting certain OTC securities that may be less susceptible to potential fraud and manipulation; and (iv) streamline the Rule and remove obsolete provisions without undermining the important investor protections of the Rule.

https://www.sec.gov/news/press-release/2019-189

penknee

10/09/19 10:56 AM

#45404 RE: chemist72 #45402



Here’s the part about the gray’s: “Eliminate the piggyback exception during the first 60 calendar days after the termination of a Commission trading suspension under Section 12(k) of the Exchange Act;”

This is an easy read on some of the changes: https://www.sec.gov/news/press-release/2019-189

I would agree with you that they won’t be quoted, at least from what I’ve read, but it could keep them from being subject to a civil lawsuit from the SEC, unlikely for many, but it does happen. Filing a form 15 only relieves the companies obligations to the SEC, public companies must still make information publicly available to shareholders, including financial statements, they don’t usually do that, but they’re supposed to. How they end up being subject to this rule, I have no idea, doesn’t look like the old loopholes are going to be available for crappy pennies. The only companies I know of that file them are garbage scams, so I can’t really answer that question, but there may be some legit ones. Either way it doesn’t help any of these companies like SIGO, it’s a losing situation. SIGO could become current, likely exposing lack of revenues etc., or they can do nothing and not have their stock quoted. First option would dilute the stock into triple zeros as shareholders sell, and note holders are able to convert; option two skips all that and straight to zero. I suspect that Wade has made his millions, so whatever happens here doesn’t affect him much, and he still has at least a year to sell more shares if he has any left.