Replies to post #167801 on Enzolytics Inc (ENZC)

[foxi]

I was looking at OTC uplisting requirements last night. With the audit done, wouldn't uplisting be an imminent catalyst? And I'd think they'd aim for OTC uplists before NYSE or Nasdaq. Anything to get out of the pinks!


From what I could see, ENZC can't uplist to QX until they get a lot more revenue, or increase net tangible assets.

Net Tangible Assets:
$5mm: Less Than 3 Years Operations
$2mm: 3+ Years Operations

OR

Revenue:
$6 million average for last 3 years

https://www.colonialstock.com/otc-listings.htm#otcqx

ENZC can't uplist to QB unless they're willing to be transparent about material events, and either get off Alternative Reporting Standard or form an audit committee. Audit committee shouldn't be a big deal, but timely disclosure of material news is tricky since they've been hiding material events behind NDAs and generally waiting months to (sometimes) disclose setbacks; the company may prefer to stay Pink to avoid that accountability.

Provide timely disclosure of material news.

https://www.colonialstock.com/otc-listings.htm#otcqb

Corporate Governance (Required for Alternative Reporting Standard Only). Alternative Reporting Companies are required to meet the corporate governance standards outlined below: a. Have a board of directors that includes at least two Independent Directors; and b. Have an Audit Committee, a majority of the members of which are Independent Directors.

https://www.otcmarkets.com/files/OTCQB_Standards.pdf (bottom of page 2)

They're nearly meeting QB eligibility, as best as I can tell. I don't see a good reason to delay that uplisting.