Summary of OTCQX Listing and Quotation Eligibility and Requirements for International Companies

Recently OTC Markets Group published its updated OTCQX Rules for International. Here is the summary. OTC Markets divides issuers into three  levels: OTCQX, OTCQB and OTC Pink.

The OTCQX has two tiers of quotation for U.S. companies: (i) OTCQX International Premier; and (ii) OTCQX International.  International issuers on the OTCQX must meet specified eligibility requirements.  Quotation is available for American Depository Receipts (ADR’s) or foreign ordinary securities of companies traded on a Qualifying Foreign Stock Exchange

International issuers on the OTCQB must either be fully reporting and current in their SEC reporting obligations or qualify for the Rule 12g3-2(b) exemption from SEC registration for foreign private issuers.  In addition, OTCQB entities must meet minimum price standards, file annual reports and pay annual fees, but do not undergo additional quality review.

International issuers on the pinksheets are not required to be reporting with the SEC nor are they required to qualify for the Rule 12g3-2(b) exemption from SEC registration for foreign private issuers.  Pinksheets are available to ADR’s and foreign ordinary securities of companies traded on a Qualifying Foreign Stock Exchange.  However, such issuers are then further qualified based on the level of voluntary information provided to OTC Markets. Issuers with no information are denoted by a skull and crossbones, issuers with limited financial and business information are classified as “limited information,” and issuers which provide information as set forth in the OTC Markets Pink Alternative Reporting Standard are denoted with a “current information” symbol.

 

The complete details are available on the OTC Link website, otcmarkets.com

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