NEW YORK,
June 12, 2015 /PRNewswire/ --
OTC Markets Group Inc. (OTCQX: OTCM), operator
of Open, Transparent and Connected financial marketplaces for
10,000 U.S. and global securities, today announced it has published
proposed new rules and standards for companies seeking to use newly
adopted "Regulation A+," a provision of the Jumpstart Our Business
Startups (JOBS) Act, to go public and have their securities traded
on the OTCQX® Best and OTCQB® Venture
Marketplaces.
The newly proposed OTCQX and OTCQB rules, which were
posted this week to www.otcmarkets.com, are designed
to support informed and efficient secondary trading for Regulation
A+ securities. These rules define the initial
and ongoing financial reporting obligations for U.S. companies
raising capital under Regulation A+ to have their securities
publicly traded on OTCQX and OTCQB, the top tiers of the U.S.
unlisted market, and will provide a roadmap for Regulation A+
companies that are committed to providing a transparent and trusted
public trading market for their investors.
Issuers, advisors and other marketplace participants will have 30
days to comment on the proposed changes before they go into
effect.
"Our premium OTCQX Best and OTCQB Venture marketplaces
provide an ideal platform for Reg. A+ companies as they offer the
trading, transparency and trust of a well-regulated public market
with a broker-driven, electronic network-based model that is more
suited to the needs of smaller issuers and their investors," said
R. Cromwell Coulson, President and
CEO of OTC Markets Group. "Companies that raise
capital under Reg. A+ will benefit from our SEC regulated ATS
trading platform to build visibility for their companies, provide
liquidity to their investors, broaden their shareholder base and
build a robust, transparent public market for their investors as
they grow and mature their
businesses.
"We look forward to welcoming more new companies to our
markets under Reg. A+, which will further expand the universe of
opportunities available to investors," continued
Coulson.
OTCQX and OTCQB Regulation A+ Eligibility
Requirements
The OTCQX Best Marketplace offers informed and efficient
trading for established, investor-focused U.S. and international
companies. Under the proposed new OTCQX rules, a
company may use its required disclosure under Regulation A+ Tier 2
to help meet its initial and ongoing disclosure
requirements. In addition to required Regulation
A+ disclosure, an OTCQX company must file quarterly financial
reports, make timely disclosures of material news events and meet a
PCAOB audit standard on an ongoing basis. Canadian companies
raising capital under Regulation A+ must be listed on a qualified
foreign stock exchange such as the Toronto Stock Exchange to
qualify for OTCQX.
There are more than 350 companies traded on the OTCQX
marketplace, representing an aggregate $1.4
trillion in market capitalization. These
top tier companies range from global, blue-chip leaders like
Adidas, Heineken, Roche and Volkswagen to investor-focused U.S.
community banks to established and growing U.S. and international
companies.
The OTCQB Venture Marketplace offers transparent trading
for entrepreneurial and development stage U.S. and international
companies. Under the proposed new OTCQB standards, a company that
meets the existing OTCQB eligibility criteria can use its required
Regulation A+ Tier 2 reporting to fully meet its initial and
ongoing OTCQB disclosure requirements. Canadian
companies raising capital under Regulation A+ must be listed on a
qualified foreign stock exchange such as the TSX Venture Exchange
to qualify for OTCQB.
More than 900 companies are traded on the OTCQB
marketplace, representing a combined $73.1
billion in market
capitalization.
For details about OTC Markets Group's OTCQX rule
proposals, visit
http://www.otcmarkets.com/content/doc/qx/Rules/Release/9.pdf
For details about OTC Markets Group's OTCQB rule
proposals, visit
http://www.otcmarkets.com/content/doc/OTCQB/release2.pdf.
About OTC Markets Group
Inc.
OTC Markets Group Inc.
(OTCQX: OTCM) operates Open, Transparent and Connected
financial marketplaces for 10,000 U.S. and global
securities. Through our OTC Link® ATS, we
directly link a diverse network of broker-dealers that provide
liquidity and execution services for a wide spectrum of
securities. We organize these securities into
marketplaces to inform investors of opportunities and risks: the
OTCQX® Best Marketplace; the OTCQB® Venture Marketplace; and the
OTC Pink® Open Marketplace. Our data-driven
platform enables investors to easily trade through the broker of
their choice at the best possible price and empowers a broad range
of companies to improve the quality and availability of information
for their investors. To learn more
about how we create better informed and more efficient financial
marketplaces, visit
www.otcmarkets.com.
OTC Link ATS is operated by OTC Link LLC, member
FINRA/SIPC and SEC regulated ATS.
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Media Contact:
Saskia Sidenfaden, OTC Markets Group
Inc., +1 (212) 896-4428,
saskia@otcmarkets.com
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SOURCE OTC Markets Group Inc.