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August 11, 2016
 
 
OTC Markets Blog
Our Blog Launches This Month
 

We are excited to announce the launch of our OTC Markets Blog. This new platform will bring together thought leaders and industry experts to share their insights on the news and events that affect the public trading market. We hope this blog will also serve as resource for companies, investors and industry professionals to comment, ask questions and join the discussion on the topics surrounding our industry.

 

In our first posts, we cover key issues for companies and advisors considering Regulation A+, addressing topics such as testing the waters, secondary trading and working with financial intermediaries.

Follow the discussion at blog.otcmarkets.com.

 
 
 
Light up the Market
 
Air Canada (OTCQX: ACDVF)
 

Air Canada (OTCQX: ACDVF) Lights up the Market to celebrate joining the OTCQX Best Market!

Follow us on Twitter at @OTCMarkets to keep up with OTCQX companies Lighting Up Their Market.

Euromax Resources (OTCQX: EOXFF)

First Security Inc. (OTCQX: FIIT)

The Singing Machine (OTCQX: SMDM) 

 
 
 
 
More States Grant OTCQX and OTCQB Blue Sky Recognition
 

Rhode Island and Alaska join Vermont, Washington, Wyoming and Iowa in recognizing our premium markets for the purposes of each state’s “Blue Sky Manual Exemption”. These initial state recognitions are an important step in garnering national recognition for our markets. 

 
 
Community Spotlight
 
First Resource Bank (OTCQX: FRSB)
 

Glenn Marshall, President & CEO of
First Resource Bank (OTCQX: FRSB)

 

"We have added the infrastructure to grow the Bank by 50% from our 12-31-2015 level. We expect that this will be achieved in a three year horizon. We plan to continue to grow the loan portfolio similar to the past five years, with a focus on commercial real estate. We have added resources on the deposit side of the Bank to enhance our organic growth to get us in the position to eliminate some of our wholesale funding as it matures."

 

OTC Markets Group (OTCM): Tell us about your company.

Glenn Marshall: First Resource Bank is an 11 year old, $220 million hybrid community bank, a term we use to describe our dual focus of high touch and high tech banking. We provide a high touch experience through our limited number of well positioned branches in a traditional community bank model, coupled with high technology for remote deposit capture, mobile deposit, online banking and online cash management. We operate in Chester County, PA, a suburban area near Philadelphia, which is consistently ranked as one of the ten best markets to live, work and play in the country.

Click here to read the full interview.

OTCM: What were your major accomplishments for the last year?

Mr. Marshall: Besides 12% year to year loan growth for the past two and a half years, we see the redemption of the Small Business Lending Fund preferred stock and the avoidance of its potential 9% dividend in 2016 as a material benefit to the common stockholder. Our capital raise in 2015 was a combination of common stock and subordinated debt in the least dilutive manner to achieve the goals of saving the preferred stock dividends as well as ensuring adequate capital to support continued growth.

OTCM: What are you focused on for the year ahead? Can you tell us about the company’s 3 to 5-year growth strategy?

Mr. Marshall: Growing the Bank! We have added the infrastructure to grow the Bank by 50% from our 12-31-2015 level. We expect that this will be achieved in a three year horizon. We plan to continue to grow the loan portfolio similar to the past five years, with a focus on commercial real estate. We have added resources on the deposit side of the Bank to enhance our organic growth to get us in the position to eliminate some of our wholesale funding as it matures. The three to five year goal is to move wholesale sources to a backup role and as tool to manage interest rate risk with our primary funding coming from local businesses and individuals within our market. This will be accomplished through natural growth among the existing two physical locations, plus addition of one or two more branches in the 3 to 5 year horizon. The current technology and enhancements will be an overriding factor on the need and number of more expensive physical locations added. Our electronic channel is 10% of the cost of a physical branch and we have almost 50% of our daily deposit volume being processed via remote deposit capture or other electronic means. Physical locations will only be pursued in markets that can support strong deposit volumes.

OTCM: What is your strategy for growing your shareholder base and communicating with investors?

Mr. Marshall: As our investor base has expanded from the original local investors, we have expanded our communication efforts including upgrading our trading platform to OTCQX. Our participation in OTCQX virtual investor conference opportunities the last two years, our shareholder newsletter, our active press release approach and this newsletter will continue to expand our outreach to investors no matter their locations. I believe that these communications and outreach to investors will continue to grow with our expanding base.

OTCM: What else do you want investors to know about your company?

Mr. Marshall: We operate in a great market with tons of disruption from the acquisitions of competitors by large out of state banks. This is somewhat of a perfect storm for us at a point when we are well positioned to continue to expand First Resource Bank.

Click to close.

 
 
 
Update on Petition to Extend Reg A+ to SEC Reporting Companies
 

In June, we filed a Petition for Rulemaking with the SEC to amend Regulation A+ to allow SEC Reporting companies to utilize this important form of online capital raising.

In a recent Op-Ed published in Markets Media, OTC Markets Chairman Neal Wolkoff explained the importance of expanding access to Regulation A+ for SEC Reporting companies, highlighting the value of transparent, public, online capital raising for small companies, investors and regulators.

More than a dozen comment letters have been filed in support of the Petition. If you would like to get involved in this important cause, we encourage you to read the full Petition and send comments to the SEC at rule-comments@sec.gov. Include reference to File No. 4-699 in the subject line.

 
 
OTCQX Video Series
 
Corvus Gold, Inc. (TSX: KOR; OTCQX: CORVF)
 

Jeffery Pontius, CEO of Corvus Gold, Inc. (TSX: KOR; OTCQX: CORVF) visited us at the OTCQX Market Center to discuss the company’s primary gold exploration asset in Nevada and its growth strategies. The company is celebrating its 5th anniversary of trading on our OTCQX Market.

Watch the video.

 
 
 
 
Monthly Trade Summary - July 2016
 
 
Market Designations Number
of Securities*
Monthly
$ Volume
Monthly $ Volume
per Security
YTD $ Volume*
 
OTCQX 449 $3,600,946,291 $8,019,924 $21,088,771,076
OTCQB 936 $465,284,232 $497,098 $4,724,041,294
Pink 8,336 $13,196,573,412 $1,583,082 $80,469,649,261
Total 9,721 $17,262,803,935 $1,775,825 $106,282,461,631
 

*Data as of July 31, 2016

 
 
Q2 2016 Index Performance
 
 
Index Symbol Return
OTCQX Composite OTCQX 1.3%
OTCQX Billion+ OTCQXBIL 1.1%
OTCQX Dividend OTCQXDIV -2.2%
OTCQX Banks OTCQXBK 1.0%
OTCQX International OTCQXINT 1.3%
OTCQX U.S. OTCQXUS 0.0%
OTCQB Venture OTCQB -24.8%
OTCM QX ADR 30 Index OTCQX30 -1.4%
OTCM ADR OTCDR -2.2%

 

 

Read about the second quarter performance of the indexes.

 
 
Proposed Amendments for OTCQX U.S. Rules
 

In July, we published proposed amendments for initial qualification within the OTCQX Rules for U.S. Companies that would affect certain new OTCQX applicants. The proposed amendments provide REITs with no operating history an opportunity to be considered for admission to OTCQX U.S. Read the full Rules Release.

OTC Markets Group welcomes feedback from OTCQX companies and their advisors on the proposed changes, which are are scheduled take effect for new OTCQX companies on August 23, 2016. Please contact issuers@otcmarkets.com with any comments or questions.

 
 
Events
 

83rd Annual Market Structure Conference – Washington D.C. (Sept. 14-16, 2016)

Inaugural Israel Day – New York, NY (Sept.14, 2016)

Marcum: Understanding Reg A+ and the 'Mini IPO' – Stamford, CT (Sept.14, 2016)

Rhoads & Sinon Institute – Harrisburg, PA (Sept.15, 2016)

FIG Partners 12th Annual CEO Forum – Atlanta, GA (Sept. 19-20, 2016)

Bank Street Partners – Nashville, TN (Sept. 21-22, 2016)

PACB Annual Convention – La Buena Vista, FL (Sept. 22-24, 2016)

4th Annual OTCQX Senior Executive Issuers Forum – Toronto, Canada (Sept. 27, 2016)

Securities Transfer Association Annual Meeting – Naples, FL (October 25, 2016)

Sidoti & Company 2016 Emerging Growth Convention – New York, NY (Nov. 1, 2016)

IR Society: Best Practice Awards Dinner – London, UK (Nov. 22, 2016)

Baruch Financial Markets Conference – New York, NY (Nov. 1, 2016)

LD Micro – Los Angeles, CA (Dec. 6-8, 2016)

Please contact events@otcmarkets.com for more information.

 
 
News
 

The Other Bull Market - Long Island Business Journal (July 22, 2016)

This article profiles OTC Markets Group and EVP Corporate Services, Jason Paltrowitz. The piece highlights OTC Markets as a trading venue well-suited for smaller companies, including regional and community banks, seeking to be publicly traded without higher costs and more rigorous disclosures associated with traditional exchanges such the NYSE or Nasdaq.

Small-Cap Industry Experts Commend The Modernized OTC Market And OTCQX Market Tier - Huffington Post (July 22, 2016)

This article underscores the OTC Markets Group position as a sophisticated market platform for small and micro-cap companies and recognizes the OTCQX market tier as a distinguished gateway and trading venue for issuers aspiring to become exchange-traded securities.

OTC Markets Group Gets Blue Sky Recognition for Two of its Venues in 4 States - Finance Magnates (July 14, 2016)

OTC Markets Receives Blue Sky Recognition in Several States - Crowdfund Insider (July 14, 2016)

Air Canada seeks to attract more U.S. investors with OTC listing - Financial Post (July 28, 2016)

 
 
New OTCQX and OTCQB Companies
 

Welcome to the companies that joined the OTCQX Best and OTCQB Venture Markets in July. 

The OTCQX Best Market

Air Canada (OTCQX: ACDVF)
Electrovaya Inc. (OTCQX: EFLVF)
First Security Inc (OTCQX: FIIT)
InsCorp, Inc. (OTCQX: IBTN)
Lapolla Industries, Inc. (OTCQX: LPAD)
Orex Minerals Inc (OTCQX: ORMNF)

The OTCQB Venture Market

ABV Consulting Inc. (OTCQB: ABVN)
Airborne Wireless Network (OTCQB: ABWN)
Aphria Inc. (OTCQB: APHQF)
Blue Water Bar & Grill, Inc. (OTCQB: BWBG)
Cellceutix Corp. (OTCQB: CTIX)
Commercehub Inc (OTCQB: CHUBB)
Computron Inc (OTCQB: CMPT)
Echo Therapeutics, Inc. (OTCQB: ECTE)
Evergreen-Agra Inc. (OTCQB: EGRN)
Fandom Sports Media Corp. (OTCQB: FDMSF)
Independence Energy Corp. (OTCQB: IDNG)
Kiwa Bio-Tech Products Group Corp. (OTCQB: KWBT)
Limbach Holdings, Inc (OTCQB: LMBH; LMBHW)
Nexoptic Technology Corp (OTCQB: NXOPF)
Northstar Electronics Inc. (OTCQB: NEIK)
Plush Corp (OTCQB: PLSH)
Prime Global Capital Group Inc. (OTCQB: PGCG)
Scientific Metals Corp. (OTCQB: SCTFF)
Southern Silver Exploration Corp. (OTCQB: SSVFF)
VOIP-PAL.com, Inc. (OTCQB: VPLM)
Yinfu Gold Corp. (OTCQB: ELRE)

 
 
Graduates to an Exchange Listing
 

Congratulations to the companies that graduated from the OTCQX Best Market and the OTCQB Venture Market to a U.S. exchange listing in July.

The OTCQX Best Market

DelMar Pharmaceuticals, Inc. (NASDAQ: DMPI)

The OTCQB Venture Market

Long Island Iced Tea Corp. (NASDAQ: LTEA)