Replies to post #24021 on Code Green Apparel Corp (CGAC)

[ChowChowDog]

we need to get to the bottom of this

[Ribo]

They have until March 28, 2023 or lose their proprietary quote status.

They will not be sent to Expert Market or be delisted..

The only difference is you will see this warning on otc markets.


Warning! This security is eligible for Unsolicited Quotes Only

This stock is not eligible for proprietary broker-dealer quotations. All quotes in this stock reflect unsolicited customer orders. Unsolicited-Only stocks have a higher risk of wider spreads, increased volatility, and price dislocations. Investors may have difficulty selling this stock. An initial review by a broker-dealer under SEC Rule15c2-11 is required for brokers to publish competing quotes and provide continuous market making.

[Ribo]

https://www.otcmarkets.com/learn/15c2-11-resource-center

FAQ SHELL COMPANIES
Rule 15c2-11 (The “Rule”) restricts the ability of broker-dealers to quote securities of shell companies. Effective September 28, 2021, broker-dealers may only quote a security within 18 months following the initial priced quotation, and only if the company makes current information available to investors pursuant to the Rule. The Rule also provides an 18-month transition period for any company that was identified as a shell on the effective date.

What happens to the security of a shell company after 18 months?

Broker-dealers will no longer be able to publish proprietary quotes. The security may, however, be the subject of unsolicited customer quotations. A notification will appear on otcmarkets.com advising investors that only unsolicited quotes are permitted in this stock. Any company that continues to make information available pursuant to Rule 15c2-11 will remain on the Pink Market. Companies that cease to make information available pursuant to the Rule will be moved to the Expert Market. Any company that was a shell on September 28, 2021 and is still a shell will become ineligible for broker-dealer proprietary quotes on March 28, 2023.