OTC Markets Group will display a “Penny Stock Exempt” flag on www.otcmarkets.com for securities traded on the OTCQX or OTCQB markets that are exempt from the penny stock definition under SEC Rule 3a51-1 because they meet one of the following tests: 1) A price of over $5 per share, 2) the issuer has Average Revenue of at least $6 million for the last 3 years, or 3) the issuer has Net Tangible Assets in excess of $2 million if the issuer has been in continuous operations for at least 3 years or $5 million if less than 3 years. See: SEC Rule 3a51-1 - Definition of a Penny Stock
The Securities and Exchange Commission (SEC) determines if a penny stock is exempt, based on specific rules and exemptions in the Securities Exchange Act of 1934. The SEC considers a security exempt if it's listed on a national exchange with stringent standards, or if certain transactions meet exemption criteria, such as those with institutional accredited investors or those not recommended by the broker.
The Securities and Exchange Commission (SEC): The SEC sets the rules and has the authority to exempt certain penny stocks or transactions from specific regulations, such as registration requirements or disclosure rules.
Exemptions for issuers: The SEC can exempt an issuer if it has limited net assets and income and does not exceed the penny stock threshold. The issuer still has to file a notice with the SEC, as long as the stock isn't traded on a national exchange or automated quotation system.
Exemptions for transactions: The SEC has also adopted exemptions for specific transactions. These include trades with institutional accredited investors, transactions with the issuer or its insiders, or trades that are not recommended by a broker-dealer.
Key factors in exemption Listing on a national exchange: Securities listed on a national exchange with stringent listing standards are exempt because the exchange's rules are considered sufficient to protect investors.
Type of investor: Transactions with institutional accredited investors or company insiders are exempt from some of the rules. Broker recommendation: Transactions not recommended by the broker-dealer are exempt from specific disclosure rules. Company size and assets: While not a direct exemption, companies with less than \(\$10\) million in assets generally do not have to file reports with the SEC. Some smaller companies may voluntarily register with the SEC.
Cash is a tangible asset because it has a physical form that can be touched and held. It is considered a current tangible asset because it is a liquid asset that can be easily converted to cash, and it is often listed on a company's balance sheet alongside other physical assets like buildings and equipment.
Physical form: Cash, in the form of currency, has a physical substance that distinguishes it from intangible assets like patents and copyrights.
Current asset: Because it is a liquid asset that can be readily used to purchase other goods and services, it is classified as a current asset, expected to be used or converted into cash within one year.
Balance sheet inclusion: Accounting practices include cash as a tangible asset when calculating a company's net tangible assets (NTA)
MineralRite Corporation and its CEO Accept Invitation to Join CEOBLOC in the Fight to Achieve Micro-Cap Market Reform Dallas, Texas, June 23, 2025 –– MINERALRITETM Corporation (OTC Pink: RITE) (the “Company” or “RITE) today announced that its President and CEO, James Burgauer, has formally accepted an invitation to join CEOBLOC — a growing coalition of micro-cap executives and market stakeholders dedicated to combating abusive trading practices and restoring integrity to the public markets — particularly within the small-cap and OTC sectors. CEOBLOC was founded in 2023 by Jeremy Frommer, CEO of Creatd, Inc. as an advocacy group and professional platform designed specifically for micro-cap CEOs and public company leaders. By agreeing to join CEOBLOC, MineralRite and Burgauer demonstrate and reinforce the commitment they have made to actively participate in seeking reform initiatives aimed at addressing widespread challenges facing micro-cap issuers, particularly: 1. Naked short selling: The illegal practice of selling shares without borrowing or ensuring availability, often used to drive down stock prices artificially.
2. Toxic financing: Commonplace in the micro-cap arena, financings which rely on predatory convertible note structures (especially floorless convertibles) cause runaway dilution and price collapse. 3. Unregulated dealer activity: Entities acting as unregistered securities dealers, often in concert with toxic funders or promotional trading schemes. 4. Algorithmic trading abuse: The use of manipulative tactics like spoofing, short ladder attacks, and quote stuffing—automated strategies designed to distort prices, trigger panic selling, and exploit thinly traded markets to the detriment of companies and retail investors.
5. Market misperception: A persistent reputational bias that casts all OTC companies in the same light, regardless of governance, transparency, or fundamental quality.
#5 is for you, from what i can gather, RITE is going to be UPLISTING, OTCQB at minimum
SEC determines it, OTCmarkets displays a Penny stock EXEMPT "FLAG" so you are aware that a stock is indeed PENNY STOCK EXEMPT on OTCMARKETS
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