The latest updates from OTCMarkets | Not displaying properly? Click here
 
July 13, 2016
 
 

OTCQX and OTCQB Markets Receive State Blue Sky Recognition

We are pleased to announce that Vermont state regulations now recognize the OTCQX market, and Washington, Wyoming and Iowa securities regulators recognize the OTCQX and OTCQB markets, as securities manuals for the purposes of each state’s “Blue Sky Manual Exemption.”

Why is this important for our markets?

Blue Sky laws, which are determined individually by each state, generally mandate that a company discloses accurate and current information when offering or marketing securities – with the goal of helping investors make more informed investment decisions.

By recognizing the value of online access to current public information that OTCQX and OTCQB companies offer, and granting these markets status as recognized manuals, these state regulators are supporting more efficient trading on our premium markets.

Read about our campaign to educate state regulators and gain recognition in all 50 states.

 
 
 
Extending Regulation A+ to SEC Reporting Companies
 

Last month, we filed a Petition for Rulemaking with the SEC, requesting that they extend Regulation A+ to allow SEC Reporting Companies to leverage this important form of online capital raising.

Thank you to all that have submitted comments on the petition. If you have not yet had a chance to read the petition, we encourage you to do so and to email comments directly to the SEC at rule-comments@sec.gov. Below we have highlighted excerpts from some of the comments that have been sent to the SEC so far.

John N. Hatsopoulos, Co-Chief Executive Officer, Tecogen Inc. & American DG Energy Inc.

"As currently written, Reg. A+ excludes all SEC Reporting Companies - companies that already meet the SEC's high disclosure standards - from fundraising in this manner. By excluding SEC reporting companies, the SEC missed a critical opportunity to expand access to capital, drive costs lower, and support small company growth - the engine of the US economy and top creator of jobs in America." Read more.

Steven Dresner, Founder, Dealflow.com

"Given the existing framework for the "new" Regulation A, including provisions regarding financial and other qualitative disclosure, it would seem logical (and easy from a legislative and regulatory perspective) to broaden the utility of Regulation A by allowing smaller publicly reporting companies to use this capital-raising option." Read more.

Douglas S. Ellenoff, Ellenoff Grossman & Schole LLP, New York, New York

"We believe that implementation of these requested amendments would be beneficial to smaller reporting issuers without compromising any investor protections since, as the Petition highlights, these issuers are already required to provide compliant and substantive disclosures." Read more.

 
 
Expanded Relationship with Interactive Brokers
 

Interactive Brokers, an automated global electronic broker, has added real-time Level 2+ service to their Trader Workstation platform. With this agreement, Interactive Brokers' 353,000 client accounts will have access to complete quote data for OTCQX, OTCQB and Pink securities, as well as unique security information such as Market Designation, Security Type, Piggyback Status and Caveat Emptor status.

By providing greater access to our data, we continue our goal of providing a superior investment experience. Read more.

Contact marketdata@otcmarkets.com for more information.

 
 
OTCQX Video Series
 
Britvic plc (LSE: BVIC; OTCQX: BTVCY)
 

Bob Power, OTC Markets VP of Corporate Services, recently spoke with Rupen Shah, PLC Finance & Investor Relations Director, and Stephen Nightingale, Director of Investor Relations, for Britvic plc (LSE: BVIC; OTCQX: BTVCY).  They discuss long term growth in the UK and Ireland and expansion into newer markets like France and Brazil. 

 
 
 
 
Community Spotlight
 
Red 5 Limited
 

Mark Williams, Managing Director of Red 5 Limited (OTCQX: RDFLY), tells us about his company's operations and the conclusion of its feasibility study for the Siana Gold Project. 

 

"The updated study demonstrated that the proposed Siana underground development is an economically robust project that will significantly extend the life of the Siana operation."

 

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

Mark Williams: Red 5 Limited is an Australian-based company which is involved in gold mining and exploration in the Philippines. The company's principal asset is the Siana Gold Project, which is held under a Mineral Production Sharing Agreement (MPSA) by Greenstone Resources Corporation (a Red 5 Philippine affiliate company). The Siana Project has been in production since April 2012 and is currently mined by open pit methods, with a planned transition to underground mining in the near future.

The Company's second principal asset is the Mapawa MPSA, which is located approximately 20 kilometres north of Siana. The property hosts a known gold porphyry system with various high-grade gold occurrences throughout the project area. The Mapawa Project has the potential to be developed as a future satellite source of ore feed for the Siana processing plant.

Click here to read the full interview.

OTCM: You recently announced the conclusion of the updated underground feasibility study for the Siana Gold Project. What was the outcome?

Mr. Williams: The outcome was a great result for the Red 5 Group, with the successful update of the Underground Feasibility Study marking a significant milestone for the Siana operation. The updated study demonstrated that the proposed Siana underground development is an economically robust project that will significantly extend the life of the Siana operation well beyond the current open pit operation, with an initial mine plan based on the extraction of 504,000oz of gold over a 9-year mine life including development.

Key outcomes from the study included:

  • Average annual forecast recovered gold production of approximately 60,000 ounces per annum;
  • Forecast life-of-mine All in Sustaining Costs, including capital, of US$930 to US$980 per ounce; and
  • Forecast pre-tax Net Present Value of US$50 million assuming a US$1200 gold price and 10% discount rate.
Based on the strong financial and technical results of the Underground Feasibility Study, Red 5's Board has approved the development of the underground mining operation, and construction will commence in the second half of 2016.

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. Williams: For the next financial year (FY 2017), our focus will be on achieving forecast gold production levels and delivering free cash flow from the open pit operations in order to provide funding for the development of the underground mine.

Full year forecast production from the open pit for 2016-17 is between 72,000 and 80,000 ounces of gold at an all-in sustaining cost of between US$740 and US$780 per ounce. At current gold prices, the company believes it will generate enough cash to fund the underground development.

Initial works relating to the construction of the new underground portal will commence in July 2016 and it is anticipated that the development of the decline tunnel will commence in the December 2016 quarter.

The open pit has approximately 18 months' mine life remaining and is due to be completed by January 2018. By the time the open pit is exhausted, the company should have completed the underground development, enabling us to seamlessly transition from open pit to underground operations with no interruption to gold production.

Outside of the company's existing open pit and underground mine plan, we are also working actively to identify additional gold deposits to supplement production at Siana or to be developed as stand-alone mining operations.

The company is currently investigating the viability of developing an open pit operation at the Mapawa project, located 20 kilometres north of the Siana project. Mapawa has the potential to provide additional ore feed to the Siana processing plant, which will have spare capacity when the transition to underground operations has been completed.

The company also holds numerous highly prospective exploration tenements surrounding the Siana Gold Project in the Surigao del Norte region of the Philippines. This is one of the most strongly mineralised yet under-explored mineral provinces in the world and offers outstanding potential for additional discoveries.

Our aim is to continuously discover new gold deposits to replenish our Ore Reserves, so we can continue to deliver low-cost gold production from the Philippines for many years to come.

OTCM: You are listed on the Australian Stock Exchange and cross-traded in the U.S. on OTCQX. What is your investor strategy in the U.S. market?

Mr. Williams: The company's major shareholder, which holds a 17.8% stake in the Company, is located in the USA. The company recognises the importance of the mature investment markets in the US and regularly meets with its existing US-based shareholders and potential new investors.

Red 5 is aiming to increase its investment profile in North American markets and attract additional investors, leveraging off its key attributes as a growing low-cost gold producer at time of significant global investor interest in the gold sector.

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

Mr. Williams: Red 5 is well placed to become a significant gold mining company within the Philippines. The tenement holdings of the company are located in a significant mineralised province within the country, with a number of large gold, copper and nickel mines located very close to Siana – which is the only modern, centrally located gold treatment facility in the region.

The company plans to increase its focus on exploration within its tenements in the years ahead and hopes to find additional ore sources for processing at the Siana processing plant. In addition to exploration opportunities, the company believes there are a number of joint venture/corporate opportunities within the region which could either generate additional ore sources for the Siana processing plant or be standalone operations.

Click to close.
 
 
 
Monthly Trade Summary - June 2016
 
 
Market Designations Number
of Securities*
Monthly
$ Volume
Monthly $ Volume
per Security
YTD $ Volume*
 
OTCQX 448 $3,580,922,825 $7,993,131 $17,487,824,784
OTCQB 932 $854,299,598 $916,630 $4,258,757,061
Pink 8,352 $11,845,830,261 $1,418,322 $67,273,075,849
Total 9,732 $16,281,052,685 $1,672,940 $89,019,657,695
 

*Data as of June 30, 2016

 
 
Events
 

2016 Annual STANY Golf Classic – Summit, NJ (July 25, 2016)

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

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

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

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


Please contact events@otcmarkets.com for more information.

 
 
News
 

OTC Markets looking to attract Reg A+ issuers, changes rules for top platform - The Deal (June 2, 2016)

OTC Markets Tells SEC: Extend Eligibility of Reg A+ to All Smaller Reporting Companies - CrowdFund Insider (June 9, 2016)

OTC Markets Petitions SEC to Expand Online Capital Raising to Reporting Firms - Finance Magnates (June 10, 2016)

Brief: OTC Markets Expands Arrangement with Thomson Reuters - Crowdfund Insider (June 16, 2016)

Interactive Brokers Expands OTC Markets Content - Inside Market Data (June 20, 2016)

 
 
Light up the Market
 
 

OTCQX companies Light up the Market to celebrate trading on the Best Market!

Avalon Advanced Metals (OTCQX: AVLNF)

CohBar Inc(OTCQX: CWBR)

The J.G. Wentworth Company (OTCQX: JGWE)

Orex Minerals Inc (OTCQX: ORMNF)

 
 
 
 
New OTCQX and OTCQB Companies
 

Welcome to the companies that joined the OTCQX Best Market and the OTCQB Venture Market in June. 

The OTCQX Best Market

Affinion Group Holdings, Inc. (OTCQX: AFGR)
Cordoba Minerals Corp. (OTCQX: CDBMF)
FTE Networks, Inc. (OTCQX: FTNW)
Neurovive Pharmaceutical AB (OTCQX: NEVPF)
The J.G. Wentworth Company (OTCQX: JGWE)


The OTCQB Venture Market

Amarantus Bioscience Holdings, Inc. (OTCQB: AMBS)
Azure Midstream Partners, LP (OTCQB: AZUR)
Bang Holdings Corp. (OTCQB: BXNG)
Creative Medical Technology Holdings, Inc. (OTCQB: CELZ)
Destiny Media Technologies, Inc. (OTCQB: DSNY)
FutureLand Corp. (OTCQB: FUTL)
Grow Condos, Inc. (OTCQB: GRWC)
I-Minerals Inc. (OTCQB: IMAHF)
JRSIS Health Care Corp (OTCQB: JRSS)
Life Clips, Inc. (OTCQB: LCLP)
Michael James Enterprises, Inc. (OTCQB: MJTV)
Midwest Holding Inc. (OTCQB: MDWT)
Miramar Labs Inc (OTCQB: MRLB)
Pacific North West Capital Corp. (OTCQB: PAWEF)
Paragon Shipping, Inc. (OTCQB: PRGNF)
QPAGOS (OTCQB: QPAG)
QS Energy, Inc. (OTCQB: QSEP)
Reraise Gaming Corp. (OTCQB: RPPG)
Weyland Tech Inc. (OTCQB: WEYL)
Zadar Ventures Ltd. (OTCQB: ZADDF)

 
 
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 June.

The OTCQX Best Market

Paragon Commercial Corp. (NASDAQ: PBNC)


The OTCQB Venture Market

Socket Mobile, Inc. (NASDAQ: SCKT)

Viveve Medical, Inc. (NASDAQ: VIVE)