OTCQX Listings
OTCQX…a Better Market Tier…without Sarbanes-Oxley!Considering going public on the OTCQX? Go Public Pros LLC can take your company public on the OTCQX quickly and affordably. We manage everything from start to finish to insure a successful OTCQX listing.
What is the OTCQX?
QTCQX is the newest premier OTC market tier in the U.S. for trusted companies that want to distinguish themselves from the thousands of other companies trading over-the-counter (Pink Sheets, OTCBB, etc). OTCQX companies offer greater visibility and access to investors, with the option of complying with OTCQX's Alternative Disclosure Guidelines rather than Sarbanes-Oxley.
For growth companies that desire a future listing on NASDAQ or NYSE Alternext, OTCQX offers the benefit of being part of a growing market tier with increased U.S. investor visibility and association with large, globally recognized companies. Most important to many growing companies, there is no Sarbanes-Oxley to deal with.
Why Investors like OTCQX
OTCQX separates out the credible companies from the large number of economically distressed and questionable companies that trade OTC. Companies that list on OTCQX demonstrate their commitment to providing superior information to investors and maintaining the highest quality standards.
OTCQX is fully electronic and gives investors access through all major online and full-service brokerage firms in the U.S., including Schwab, E*TRADE, Scottrade, TD Ameritrade, and Fidelity. Trades are settled and cleared in the U.S. similar to any NASDAQ or NYSE stock and trade reports are disseminated through Yahoo, Bloomberg, Reuters, and most other financial data providers. In addition, investors can view Real-Time Level 2 Quotes for all OTCQX companies for free on otcqx.com providing access to detailed market data, including market depth.
Listing on OTCQX offers a more trusted listing venue, greater visibility and a better platform to provide disclosure to investors and expand a company's shareholder base. A listing on OTCQX includes additional complimentary services to promote market transparency, facilitate price discovery and enhance liquidity.
OTCQX U.S. Requirements:.
- Ongoing operations (no shells, blank check or special purpose acquisition companies);
- A minimum bid price of $0.10 (for preceding 90 business days);
- The company may not be subject to any bankruptcy or reorganization proceedings;
- The company must be duly organized, validly existing and in good standing under the laws of each jurisdiction in which the company is organized;
- At least 50 beneficial shareholders, each owning at least 100 shares of the Company's common stock;
- Ongoing quarterly and audited annual financial reports posted on OTCQX.com, a premier website for qualifying companies (SEC Registered issuers can use EDGAR); and
- Inclusion in the Standard & Poor's Corporation Records or Mergent Manuals (fka Moody's Manuals), which satisfies the Blue Sky requirements for secondary transactions in many states, together with a list of any other states in which the security is Blue Sky compliant and eligible to be sold by brokers in those states;
- DAD Letter of Introduction upon application process completion and quarterly and annually thereafter to Pink OTC Markets Inc. confirming that the issuer has made adequate current information publicly available and meets the tier inclusion requirements.
OTCQX U.S. Premier Requirements
- Designed to identify issuers that are of the size and quality to list on a National Stock Exchange. Additional requirements include:
- A minimum bid price of $1(for preceding 90 business days);
- At least 100 beneficial shareholders, each owning at least 100 shares of the company's common stock;
- The company meets the financial qualifications of the continued listing on the NASDAQ Capital Market;
- Conduct Annual shareholders' meetings; and
- The company meets all of the requirements of the OTCQX U.S. Tier above.
Application Fee: $5,000 Annual Fee: $15,000
| | OTCQX U.S. | OTCQX U.S. Premier |
| Total Assets |
$2 million |
$2 million |
| Bid Price |
$0.10 |
$1.00 |
| Beneficial Shareholders |
50 |
100 |
| Market Value of Publicly Held Shares |
|
$1 million |
| Publicly Held Shares |
|
500,000 |
| Conduct Annual Shareholders' Meeting |
|
Yes |
| |
Must also satisfy one of the below |
Must also satisfy one of the below |
| Revenue |
$2 million |
at least $6,000,000 average for the last three years |
| Net Tangible Assets |
$1 million |
$2 million if in operation for at least three years, or $5 million if in operation for less than three years |
| |
|
Must also satisfy one of the below |
| Net Income |
$500,000 |
$500,000 (in the latest fiscal year or in two of the last three fiscal years) |
| Stockholders’ Equity |
|
$2.5 million |
| Market Value of Listed Securities |
$5 million |
$35 million |
Notes: 1) All criteria must be met using data as of the most recent fiscal year except for bid price which is monitored on a daily basis. 2) The OTCQX U.S. Premier requirements incorporate the NASDAQ Capital Market Continued Listing Standards. 3) Publicly Held Shares are defined as total shares outstanding minus shares held by officers, directors, or beneficial owners of more than 10% of the company. |
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