Replies to post #58026 on Funr (FUNR)

[hardlesson]

Not a "Shell" but still a "Shell Risk."

https://www.otcmarkets.com/files/OTCM%20Compliance%20Flags.pdf

"In anticipation of this first 18-month deadline, OTC Markets has included FAQs for shell companies on its 15c2-11 resource center page. OTC Markets has also designated a surveillance team to review for shell status. In general, OTC markets will determine a company is a shell when the company has identified itself as such in its SEC periodic reports or reports filed with OTC Markets via the alternative disclosure system.

This is different than the ongoing “shell risk” designation that a company may periodically see on its quote page. As part of its ongoing review of companies, OTC Markets may designate a company with a shell risk flag, where it believes, in its sole and absolute discretion that a company displays characteristics common to shell companies. The designation does not indicate that a company has labeled itself as a shell (that would instead be a firm shell flag not a “shell risk”). The shell risk review includes evaluating asset composition, operational expenditures, and income related metrics. When a company receives a shell risk flag, it has the opportunity to provide evidence, including material changes in financial condition in publicly reported financial statements, to OTC Markets to request the removal of the flag."


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hL

[kex0414]

This is a supposition based on some prior investigation:
It is a superfluous notification that OTC uses to push tickers to publish more information.

The Shell Risk designation indicates that a company displays characteristics common to Shell Companies. This designation is made at OTC Markets’ sole and absolute discretion based on an analysis of the company’s annual financial data

"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 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".