Tag Archives: otcbb attorney

OTC Bulletin Board Eligibility Status for Delinquent SEC Filers

FINRA’s OTC Bulletin Board maintains a daily Eligibility List of those OTCBB issuers which are delinquent, or have been repeatedly late in filing their SEC reports.

What is the OTCBB Eligibility Status List?

This OTCBB Eligibility Status List shows investors which Bulletin Board companies are subject to ineligibility pursuant to FINRA Rule 6530(e).

What is the Criteria for the OTCBB Eligibility Status List?

The OTCBB Eligibility Status List identifies those OTC Bulletin Board companies that meet the following criteria:

  1. The OTCBB Issuer has been delinquent (late) in filing required annual and quarterly filings at least Two (2) times in the prior Two (2) Years; or
  2. The OTCBB Issuer has been removed from the Bulletin Board for failure to file an annual or quarterly filing at least One (1) Time in the prior Two (2) years.

OTC Bulletin Board Securities Lawyer for Delinquent Filers

Shareholders and Management of OTC Bulletin Board companies which are delinquent in their SEC filings can contact OTCBB securities lawyer Matt Stout for a no cost review of their certs and supporting documents to determine if a Rule 144 opinion or Section 4(a)(1) opinion is available at (410) 429-7076 or mstout@otclawyers.com.

What is a Penny Stock?

Penny Stocks are Quoted on the OTC Markets Pink Sheets

Penny Stocks are securities that are not listed on a national securities exchange like the NYSE or NASDAQ, and are also priced under Five Dollars ($5.00) Per Share.  The SEC’s definition of a Penny Stock is found in SEC Rule 3a51-1.  Penny Stocks are usually quoted on the over-the-counter (OTC) Markets on the Pink Sheets.  As a practical matter, most Penny Stocks trade well under a dollar, and many trade below a penny.

Penny Stocks Can Be Quoted on the OTCQB

OTCMarkets has three market tiers where OTC stocks are quoted.  These include Pink Sheets, OTCQB and OTCQX.  While stock price is a criteria for uplisting on the OTCMarkets.com to OTCQB, the minimum share price is One Penny ($0.01), well below the Five Dollars ($5.00) per share used by the SEC to define a penny stock. Since there is no minimum asset or revenue criteria for uplisting to the OTCQB, many OTCQB stocks are considered Penny Stocks.

OTCQX Companies Are Not Technically Penny Stocks

Stock price is not the only criteria for Penny Stocks. Although OTCQX, the highest market tier on OTCMarkets.com, has an initial minimum bid price criteria for US OTCQX companies of only Twenty-Five Cents ($0.25) and an ongoing minimum price of Ten Cents ($.10), OTCQX companies are not technically Penny Stocks because they meet at least One (1) of the exceptions to the Penny Stock Rule below.

Exceptions to the Penny Stock Rules

OTCQX securities are not Penny Stocks, because the criteria for quotation on the OTCQX requires these securities meet One (1) of these exclusions from the Penny Stock Rules:

  1. Net tangible assets  greater than Two Million Dollars ($2,000,000) if the company has been in operation at least Three (3) Years; or
  2. Net tangible assets of greater than Five Million Dollars ($5,000,000) if the company has been in operation less than Three (3) Years; or
  3. Revenue of at least Six Million Dollars ($6,000,000) for the last Three (3) Years.

Legal Opinion Letters for Shareholders with Restricted Penny Stocks

OTC Markets and Bulletin Board securities lawyer Matt Stout issues Rule 144 legal opinions and Section 4(a)(1) opinions for shareholders who own penny stocks and over-the-counter stocks, as well as OTC Markets Pink Sheets seeking to become current or to uplist on the OTCQB.

Contact OTCLawyers at (410) 429-7076 or mstout@otclawyers.com today.