OTC Markets Newsletter

OTCQB CEOs and CFOs Strongly Support Creating a Better OTCQB Venture Stage Marketplace

OTC Markets Group recently conducted a survey of OTCQB® and OTCQX® U.S. companies regarding planned improvements to the OTCQX and OTCQB marketplaces and ways we can improve the marketplaces and enhance shareholder value for the companies that trade there. Below are the results of the survey, which were shared in an e-mail notification to issuers this month.

Profile of Respondents

•   Over 70% of respondents are CEO or CFO of their company.
•   A majority identified their company’s primary marketplace as OTCQB; only 15% identified their marketplace as FINRA’s OTC Bulletin Board (“OTCBB”).
•   Over 80% have market capitalizations ≤ $50 million; 40% have market capitalizations ≤ $10 million.

Aggregate Responses

•   Over 60% of respondents believe their company will be listed on NYSE or NASDAQ within five years. Based on historical figures, the likelihood is that approximately 10% will achieve this goal, indicating that most OTCQX U.S. and OTCQB officers are aspirational and optimistic about their future growth prospects.
•   85% of respondents indicated they would like a marketplace with moderately high standards, but with a lower-cost compliance process. Only 2% said they would like to see low or no standards or qualifications.

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•   Overwhelmingly, respondents stated the two biggest problems investors have with the OTCQB and OTCBB marketplaces are: (1) too many stock promoters and (2) too many shells and distressed companies.

•   The top most suggested improvements to make OTCQB a better marketplace were: (1) timely disclosure of material information, (2) verification of reporting status, (3) verification of shares outstanding, (3) disclosure of promoters, and (4) disclosure of shareholders.

•   75% of respondents believe company performance is the most significant driver of share liquidity.

•   Detailed short sale data was the most requested feature or product by companies followed by free real-time Level 2 quotes for investors and the ability to communicate directly with their market makers.

•   61% of respondents said they would be willing to pay a fee for a better OTCQB venture stage marketplace, while only 9% said they wouldn’t mind continuing to trade for free on OTC Pink®.

Sample of Individual Responses

What does OTC Markets Group provide that you find most valuable?

•   “A public marketplace for trading of our securities and access to capital sources”
•   “Ability to see quotes and purchase shares in the US”
•   “Access to the US investor at a cost that is much more manageable then the NYSE MKT”
•   “Blue Sky service, availability of OTC Markets Group representatives, website”
•   “Exposure to investment community and VC Funds and industry leaders in the business sector we are in”
•   “In our bid to up-list the trading volume has been a very useful tool”

Compared to an exchange, what does OTC Markets not offer that you wish it did?

•   “The reputation of more mature exchanges
•   “More disclosure on a company's reporting status to separate the distance between OTC”
•   “A level of confidence and trust in our company that comes with being listed on NASDAQ or NYSE”
•   “Because it is not an exchange, it is difficult to comply with state blue sky laws”
•   “Access to retail brokerage networks who are forbidden from buying OTC stocks or who have a high compliance burden to recommend to clients”
•   “Reputation of listed company”
•   “More disclosure on a company's reporting status to separate the distance between OTC”

Thank you to the 200 OTCQB and OTCQX companies who participated in the survey. We value your detailed feedback and look forward to working with you as we improve the OTCQX and OTCQB marketplaces for your company and investors.

For more about this survey or for questions, contact OTC Markets Group’s Corporate Services at +1 (212) 896-4420 or issuers@otcmarkets.com.

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Get to Know Your Community: Interview with Dr. Simon Pedder, acting CEO of Cellectar Biosciences Inc.

This month, we speak with Dr. Simon Pedder, acting CEO of Cellectar Biosciences Inc. (OTCQX: CLRB). The company, which joined OTCQX in February 2012, recently underwent a strategic realignment that included organizational changes and a corporate name change. Dr. Pedder talks with us about the company’s growth strategy going forward.

OTC Markets Group: Tell us about Cellectar Biosciences.

Simon Pedder: Cellectar is working on new ways to image and treat cancer. Using a groundbreaking phospholipid ether (PLE) technology developed by our Chief Scientific Officer, Dr. Jamey Weichert, that selectively targets cancer and cancer stem cells as a delivery platform, we are developing a pipeline of product candidates that we believe can deliver both imaging and therapeutic agents directly to malignant cells enabling the precise imaging, visualization and treatment of a wide variety of cancers. If we continue to demonstrate the level of success seen in our early studies, this technology could represent a radical improvement in how cancer is detected and treated by potentially increasing the accuracy of early detection, minimizing the impact of treatment on healthy cells, and reducing the need for repeat surgeries and treatments.

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We believe the beauty of our cancer-targeting technology is that we are able to combine a wide variety of known imaging and therapeutic agents with our delivery and retention platform, creating opportunities for development across a broad range of uses and indications.

Cellectar’s current portfolio consists of PET imaging agents, optical imaging agents and therapeutic agents.

Our most advanced clinical candidate, I-124-CLR1404, is a small-molecule, broad-spectrum, cancer-targeted PET imaging agent. We are initiating a Phase II trial evaluating I-124-CLR1404 imaging of glioblastoma compared with standard of care magnetic resonance imaging (MRI) this quarter and expect to be able announce results from this trial by year-end 2014.

The next candidate slated for clinical trials is CLR1502, our cancer-targeted, non-radioactive optical imaging agent for intraoperative tumor margin illumination and non-invasive tumor imaging. We expect to obtain regulatory approval to initiate a multi-center Phase I trial in patients undergoing breast-conserving surgery in 2014. The trial will aim to establish the safety of CLR1502 and demonstrate its utility in the identification and differentiation of malignant and non-malignant tissue, based on pathology confirmation.

As we ramp up the development of our imaging agents, we are looking forward to reporting results this quarter from a Phase Ib trial of our therapeutic candidate, I-131-CLR1404, in patients with advanced solid tumors. I-141-CLR1404 is a small-molecule, broad-spectrum, cancer-targeted molecular radiotherapeutic that delivers cytotoxic radiation directly and selectively to cancer cells including cancer stem cells.

OTCM: Your company recently underwent a strategic realignment, including some organizational and personnel changes, a corporate name change and relocation of your headquarters. Tell us about some of these changes and why are you doing this now.

SP: This is a new era at the company; our priority has shifted to focused execution of our clinical programs to support regulatory approval of our products.

Cellectar was founded on extraordinary technology. Years of research have been dedicated not only to identifying and developing our core cancer-targeting technology, but also rigorously conducting thorough studies of its potential applications. Having now accumulated a compelling library of research supporting its viability across a broad range of cancers, it was time to sharpen our focus and apply the same discipline as has historically been applied to our research to mapping out a path to approval for our product candidates.

This process required some tough decisions as the opportunities are all compelling and the urgency and potential benefits to patients significant. However, several key themes emerged that guided our decision making process and that we feel define our new direction.

It is imperative that we validate our core cancer delivery and retention platform by demonstrating efficacy in robust, multi-center Phase II clinical trials in patients. Because each of our product candidates leverage the same platform, success in one indication provides additional support for pursuing additional indications in the future.

We believe our technology has the potential to target oncology indications that are currently woefully underserved by current imaging and treatment options. Pursuing a development strategy that targets rare or orphan indications not only offers the opportunity to potentially impact the lives and care of patients that are in critical need of new options, but also allows us to more effectively use our resources to conduct trials that are, generally speaking, smaller in scale.

Further, by initially prioritizing development of our imaging agents over our therapeutic agents, we believe the overall development program can be successfully executed more rapidly with a smaller clinical safety and efficacy dataset requirements for U.S. regulatory approval.

Finally, our corporate history also reflects the merger of a public company and a previously private company. Though we are utilizing the advantages afforded to us by the public company, including increased visibility in the capital markets, the research and development efforts are focused on technology developed by our private company predecessor, Cellectar, Inc.

As we looked to set our development priorities, we also felt it was important to not only realign the tremendous expertise of our existing employees with our new programs, but also to consolidate our operations in one location to optimize our collective efforts. Madison, Wisconsin, which has long been home to a majority of our employees and our in-house manufacturing site, was the natural choice for our corporate headquarters and principal executive offices.

With the right team and the right programs, we are now poised to execute on the near-term opportunities that will provide the foundation for our future growth and success. We look forward to starting this new chapter and are proud to do so under a new name, Cellectar Biosciences, that reflects the origins of our technology and the simplicity of our mission to create cancer and cancer stem cell selective technology.

OTCM: What is your growth strategy going forward?

SP: We believe we have identified a development strategy that affords us significant near-term opportunities to validate our technology while laying the foundation for the expansion of our research and development into additional oncology indications that will generate substantial future growth opportunities. Our preclinical work suggests our platform truly targets a broad range of cancer, selectively seeking out malignancy and accumulating in the cancer cells and stem cells, regardless of location within the body. This represents enormous opportunity for us to both expand the potential oncology indications for our agents currently under development as well as the opportunity to explore additional imaging and therapeutic agents that could be enhanced by selective targeting and retention in malignant cells.

We are fortunate in that our portfolio is also well suited to potential partnership and co-development opportunities that could potentially accelerate development across indications and geographies. Up until now, we have benefitted from meaningful support and collaboration from independent clinical researchers and academic institutions. Looking ahead, we plan to adopt a more pro-active business development strategy that might enable us balance internal research and product development with continued academic collaboration and new corporate partnering opportunities to more rapidly and broadly advance our pipeline.

OTCM: What else should U.S. investors know about Cellectar?

SP: We have taken significant steps to realign our business and begin rebuilding shareholder value. We have defined clinical development programs that target areas of high-unmet medical need, provide an opportunity to validate our technology and allow us to firmly establish proof-of-concept for our highly selective cancer-targeting and retention delivery platform. However, this is just the beginning. Over the next 12-18 months, investors can expect to see us report data from our Phase Ib therapeutic trial, complete our Phase II Glioma imaging trial and begin a Phase I trial of our optical imaging agent in breast cancer patients undergoing lumpectomy. Data from these programs will be critical to defining the potential of our technology and afford both the medical and investment communities the opportunity to see the true value of the advancements in targeted cancer imaging and treatment being made at Cellectar. We look forward to increasing the opportunities for dialogue with our investors throughout this process and maintaining an open, transparent and accessible relationship with our key stakeholders as we make progress against our newly identified goals.

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Canacol Energy Ltd. (OTCQX: CNNEF) and CVSL Inc. (OTCQX: CVSL) Light Up The Market in February! 


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


Monthly Trade Summary — January 2014

Marketplace Designations # of Securities* Monthly Dollar Volume Monthly Dollar Volume
per Security
Aggregate Market Capitalization
(in Millions)*
OTCQX® 336 $3,538,246,532 $10,530,496 $1,654,441
OTCQB® 3,176 $6,846,330,023 $2,155,645 $232,954
OTC Pink® Current Information 3,066 $11,058,641,799 $3,606,863 $11,787,642
OTC Pink Limited Information 375 $152,076,126 $405,536 $7,831
OTC Pink No Information 3,058 $1,345,035,960 $439,842 $54,563
Totals 10,011 $22,940,330,440 $2,291,512 $13,737,431
* Data as of January 31, 2014.
Newsletter Sponsor First American Stock Transfer, Inc.

Events & Sponsorships

OTC Markets Group has attended or will attend the following events to educate investors, broker-dealers, and OTCQX, OTCQB and OTC Pink companies about our marketplaces.

15th Annual Depositary Receipt Issuers' Conference, Emerging Europe, Middle East & Africa (April 10-13, 2014)

STANY 78th Annual Conference & Dinner (April 10, 2014)

ISEEE Spring 2014 Meeting (April 6-10, 2014)

26th Annual ROTH Conference (March 9-12, 2014)

Webinar: The Anatomy of an IPO (February 12, 2014)


Contact us if you are interested in meeting us at one of these events.


Tick pilot for illiquid stocks gains momentum - The Trade News (February 25, 2014)

OTC Markets Provides Real-Time Level 1 and Level 2 Data to REDI - Traders Magazine online (February 24, 2014)

Zacks Investment Research Now Available at OTCMarkets.com - press release (February 18, 2014)

OTC Markets Group Congratulates RXI Pharmaceuticals on NASDAQ Listing - press release (February 11, 2014)

NASDAQ OMX's GlobeNewswire and OTC Markets Group Announce Enhanced News Distribution for OTCQX, OTCQB and OTC Pink Companies - press release (February 7, 2014)

OTC to launch new marketplace for banks - SNL Financial (February 4, 2014)

Product Updates

Blue Sky Filing Service To Launch


The new Blue Sky Filing Service will help streamline the process of gaining compliance with state Blue Sky laws. The Blue Sky Filing Service will help companies file registration documents for secondary trading where exemptions are unavailable. Contact us to learn more.

Streamlined News Distribution for GlobeNewswire Subscribers


NASDAQ OMX’s GlobeNewswire has integrated its service with our OTC Disclosure & News Service to streamline and expand news distribution options for OTCQX, OTCQB and OTC Pink companies. Subscribers to both GlobeNewswire and the OTC Disclosure & News Service® can now leverage GlobeNewswire to automatically feed press releases and news to their company’s stock page at www.otcmarkets.com, in addition to market data distributors, financial portals, media outlets, investment databases and broker-dealers.

Free Access to Zacks Research Reports via www.otcmarkets.com



Free access to equity research reports published by Zacks Small Cap Research, a leading source of qualitative and quantitative analysis on small-cap companies, is now available through www.otcmarkets.com. Investors can find Zacks research reports on OTCQX, OTCQB and OTC Pink companies through the Research tab of a company’s stock page.

Sharing Research with Investors is Now Simpler


Now available to companies, there is a dedicated functionality for uploading research reports via www.otciq.com, a market intelligence and investor relations portal. Reports are available to investors through the Research tab on a company’s quote page on www.otcmarkets.com.

Service Provider Directory Now Available


The OTC Markets Service Provider Directory, a compilation of thousands of organizations that offer third-party services designed to benefit the OTCQX, OTCQB and OTC Pink companies, is now available. View the Directory in flash format or as a printable pdf file.

Contact Corporate Services at 212.896.4420 or issuers@otcmarkets.com to learn more.

Market Data Updates

REDI Global Technologies LLC offers its users access to OTC Markets Level 1+ and Level 2+ (OTCQX, OTCQB, OTC Pink, OTC Bonds) Quotes

The OTC Compliance File will launch in March 2014. The file helps market professionals streamline their equity compliance process by providing valuable security and company data, including: Penny Stock Status, Marketplace, Bankruptcy Status, Shell Status, OTC Recommendation Rule status, Number of Market Participants and Last Split Information

OTC Markets Group RSS Feed now disseminates video presentations posted by OTCQX, OTCQB and OTC Pink companies through the OTC Disclosure & News Service

For more information, contact our Market Data Services at 212.220.2166 or marketdata@otcmarkets.com.


Regulation & Compliance

New Requirements Require Alternative Trading Systems to Report Weekly Volume Information


The SEC approved a rule change to require alternative trading systems (ATS) to (i) report to FINRA weekly volume information and number of securities transactions within the ATS by security and (ii) acquire and use a single, unique market participant identifier (MPID) when reporting information to FINRA. The full notice can be found here.

Revised Migration Date for New FINRA ORF Platform


FINRA has revised the migration date for firms to begin reporting OTC equity security trades and trades in restricted equity securities effected pursuant to Securities Act Rule 144A to the new OTC Reporting Facility (ORF) technology platform to June 2, 2014.  Additional information can be found here.

SEC Proposes for Comment New Crowdfunding Regulation


The SEC has proposed for comment new Regulation Crowdfunding to implement the requirements of Title III of the JOBS Act. The proposed rule can be found here. Prospective crowdfunding portals may file an Interm Form for Funding Portals with FINRA here.

SEC Releases Proposed Rules on Regulation A+


On December 18, 2013 the SEC released proposed rules on Regulation “A+” which are intended to increase access to the capital markets for smaller issuers mandated by Title IV of the JOBS Act. Proposed rule amendments can be found here.

OTCQX - New Additions

8 new companies joined OTCQX in January:

A complete list of OTCQX companies is available on www.otcqx.com.

Our Marketplaces

The Best Marketplace with Qualified Companies

The Venture Stage Marketplace with Reporting Companies

OTC Pink
The Open Marketplace with Variable Reporting Companies

For questions, please contact OTC Markets Group.
www.otcmarkets.com • 212-896-4420 • info@otcmarkets.com

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© 2014 OTC Markets Group Inc.