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SemperFITrader

08/06/12 9:00 AM

#38960 RE: retiredtech #38959

Not sure how this relates to MSLP

What is Rule 15c2-11?
SEC Rule 15c2-11 was designed to allow non-reporting public company's securities to be quoted on The Financial Industry Regulatory Authority ("FINRA") Over-the-Counter Bulletin Board ("OTCBB") by filing some simple disclosures.

Now, companies seeking to obtain a quote on the FINRA OTCBB must be required to file reports with the Securities and Exchange Commission ("SEC"). Under Section 15 of the Securities Exchange Act of 1934 (the "Act"), as amended, a company who has filed a registered offering with the SEC, such as an S-1 registration statement is required to file reports for one year. A company which files a Form 10 or Form 10-12G becomes a reporting company under Section 12g of the Act and must file reports. To be eligible for a quotation of its securities, the company's market maker must file a Form 211 with the FINRA, the company must have sufficient free trading stock in its public float to allow Rule 15c2-11.

The stated and un-stated listing requirements for the FINRA OTC-BB are as follows:


fully reporting with the U.S. Securities and Exchange Commission,
minimum of 40 stockholders of record holding at least 100 shares each (note: this number is informal and has been moving up),
must have a market maker submit 15c2-11 (Form 211) application to FINRA and agree to act as market maker for securities of company.
If you need assistance in having a Form 211 filed with the FINRA so that your company can trade on the OTCBB, we can help prepare that paperwork and introduce you to a market maker. Contact us for more information.

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tommyfoggy

08/06/12 9:08 AM

#38961 RE: retiredtech #38959

Not an expert but I believe it means they have been moved to OTCQB due to not having a registered MM for four consecutive trading days.

http://m.seekingalpha.com/instablog/478544-redchip/142980-otcbb-delistings-and-rule-15c2-11-what-happened
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jwblue74

08/06/12 9:18 AM

#38962 RE: retiredtech #38959

MSLP is no longer on the OTCBB and has been trading on the OTCQB which is the Pink Sheets. It is a better platform and cheaper for Market Makers to use Pink Sheets than OTCBB. Read below and explains in detail the difference between the two.

OTCBB vs. OTCQB... What You
Need To Know

A recent change to how SEC reporting issuers trade on the over-the-counter markets caused more than a little anxiety among those caught off guard. Until now, most small, fully-reporting issuers believed they were being listed exclusively on FINRA’s OTCBB®. However, unbeknownst to many OTC investors, there are many Fully-Reporting Issuers trading solely on what is commonly referred to as the “Pink Sheets”, owned and controlled by Pink OTC Markets, Inc. A restriction put in place in 2000, allowing only Fully-Reporting Issuers to trade on the OTCBB only reinforced this erroneous assumption, making it appear that they were the only OTC market where these securities could be quoted -- Not the case at all.

In fact, 98% of all FINRA licensed market makers place quotations on both the OTCBB AND on the Pink Sheet platform. Superior performance and functionality along with lower costs associated with Pink OTC versus the platform provided for OTCBB® trading by FINRA have further led many market makers to remove quotation of securities from the OTCBB platform, altogether, causing some 500 securities to be automatically "delisted" to the Pink Sheets even though they were current with their reporting obligations with the SEC under the Securities Exchange Act of 1934.

On April 5, 2010, Pink OTC created a new marketplace called the OTCQB, in an effort to assist investors in distinguishing Pink Sheet traded securities that are Fully Reporting Issuers from non-reporting issuers, while allowing recently delisted OTCBB® securities to get the
recognition that, while now trading solely on the Pink Sheets, are current with their obligations under the reporting requirements of the Exchange Act and are in good standing with the SEC with regards to these obligations.

This new OTCQB marketplace will ensure that investors know that Pink OTC has many Fully-Reporting Issuers approved for trading solely on the Pink OTC platform. In the future, as long as the issuer is listed with the Pink Sheets and is current in its reporting, it will be designated as an OTCQB security. If a company is late in its reporting requirements, it would be dropped to the designation of Pink Sheets –Current Information (see link below for Pink Sheet tier system). Once current again with the SEC, the Issuer will be moved immediately back to the OTCQB marketplace.

As an interesting side note, FINRA recently has been trying to dump the OTCBB. Seems they are tiring of keeping up with it, considering their main gig as a quasi governmental organization set up to monitor and regulate SEC licensed brokerage firms and representatives, and to maintain the entire NASDAQ system!

In short, it may take awhile for investors and Issuers to come to the conclusion there is no real difference between an OTCBB® listed security and a Fully Reporting Issuer trading on the Pink Sheets now under the OTCQB designation. The recent move by many market makers to pull quotes on the OTCBB® platform causing a mass delisting to the Pink Sheets may be a precursor to the end of the importance of being listed on the OTCBB®. As the old saying goes, will the last person to leave the OTCBB® turn out the lights!
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possja18

08/06/12 9:20 AM

#38963 RE: retiredtech #38959

That is not good if that is true, will have to file a form 211, and fond a mm to represent them if that is the case. However on otcmarkets I see no mention of it. Often times when that happens it is essentially adeath sentence. Most commonly occurs after suspension by sec, we have not been suspended and clearly have been quoted every trading day. Not sure what is up with that....