Replies to post #2399 on Grey (or Expert) to Pink

[Big Brother]

There is no positive way to spin what's happening IMO. All Pink No Infos and Limited Infos will be suspended for delinquent filings by September.

These will either get sent to the Expert Market or the Greys. If they go Expert Market, they will get slapped with a CE, so no mainstream brokers will allow retail traders to buy these any longer....only sell...so they will be even more extremely thinly traded than current Expert Market tickers, if you can even find any buyers for your shares.

If they go Grey, people will still be able to buy and sell, but without L2 quotation. However, all these companies, in order to get back to quotation will need a MM to sponsor them and submit a new 211 to FINRA.....not an easy task...due to liability issues. As most folks know, only a small handful of companies in OTC history have done this, been suspended and made it back to Pink and being quoted, it's a long difficult process.

This is what's happening on the new issue side as well, the problem for companies going public is not the regulators themselves, but the clearing firms, which are private companies. Again, it all boils down to liability, these clearing firms don't want to be the first to take an initial share deposit of a penny stock, and start the trading on it.

Unless OTCM completely takes over the 211 process, all these delinquent filers are going to be extremely long holds, even after they get current....and there are certainly no guarantees they will get a sponsoring MM, especially if they have had any kind of questionable activity in their past(ie p&ds, nefarious company officers, etc).

That's the way I see it anyway.