OTC Markets Newsletter
OTC Markets Group News NOVEMBER 2014
Timeliness and Trust of Shares Outstanding for Investors

Earlier this month, the Securities and Exchange Commission (SEC) sanctioned 10 companies for failing to make the required disclosures about financing deals and other unregistered sales that diluted their stock. The SEC reporting companies all failed to file the required Form 8-K disclosure for a stock dilution scenario and several of the companies did not accurately report the stock dilution in subsequent quarterly or annual reports. All companies settled the SEC’s charges and have agreed to pay penalties.

Lack of timely disclosure around a company’s share issuances and total shares outstanding has long been a challenge for investors and brokers trading smaller company shares and is a problem we are working to solve as we make OTCQB a better venture marketplace. As of May 1, all OTCQB companies are required to undergo an annual certification process that provides the names and shareholdings of company officers, directors and beneficial shareholders who own more than 5% of outstanding shares as well as the company’s total shares outstanding and in the public float as of the most recent fiscal year. We contact OTCQB companies’ transfer agents when they join to verify this information and periodically to update the information.

We are currently working with transfer agents to automate this process by enabling them to submit this information by direct data feed, so investors and brokers can access timely share data verified by an SEC registered transfer agent on our website, www.otcmarkets.com, and through our data products.

As of this writing, 201 companies have chosen to comply with the new standards for our OTCQB venture marketplace. These entrepreneurial and development stage public companies have committed to being open and transparent with their investors. We commend them for taking this step to help build more transparency and trust for investors and brokers.

If you have questions about our new OTCQB standards or would like to check your company’s eligibility, please contact Corporate Services at +1 (212) 896-4420 or issuers@otcmarkets.com.
 UPDATE ON THE OTCQB VENTURE MARKETPLACE
This month, we announced the 200th company to be verified for trading on the OTCQB marketplace. The new standards and verification process are making OTCQB a better venture marketplace for entrepreneurial and development stage companies. We began rolling out the new standards for companies currently traded on OTCQB, beginning with those companies that have a March 31st Fiscal Year End (FYE) date. To date, 55% of eligible OTCQB companies that have reached their compliance date, 120 days post their FYE, have chosen to go through the verification process to remain traded on OTCQB.

For the first time, international companies listed on a qualified international exchange are also allowed to trade on OTCQB without SEC registration.

A snapshot of the companies that have been verified to trade on the OTCQB venture marketplace:

Companies verified for OTCQB: 201
OTC Pink SEC reporting companies upgraded to OTCQB: 72
International reporting companies upgraded to OTCQB: 17
All other companies verified for OTCQB : 112
OTCQB companies upgraded to OTCQX: 37

Over 1,750 OTCQB companies will reach their 120-day compliance date in the 8 months remaining of the rollout, which will be complete when OTCQB companies with a FYE of March 30, 2015 are required to comply by July 30, 2015. Until December 31, 2014, eligible companies currently traded on OTCQB may choose to apply prior to their required compliance date to take advantage of special pricing.

Contact issuers@otcmarkets.com to learn more about trading on the OTCQB venture marketplace.
COMMUNITY SPOTLIGHT
[photo]Interview with Jae Evans, CEO of Isabella Bank Corporation (OTCQX: ISBA)

This month, we speak with Jae Evans, CEO of Isabella Bank Corporation (OTCQX: ISBA). The financial services company, which operates in the mid-Michigan market, joined the OTCQX marketplace in August. Mr. Evans talks to use about challenges and opportunities for the company and about the decision to upgrade to the OTCQX marketplace.

OTC Markets Group (OTCM): Tell us about Isabella Bank Corporation and your subsidiary Isabella Bank. What markets do you serve and what services do you provide?

Jae Evans: Isabella Bank Corporation is a financial services holding company that was incorporated in 1988 in Mt. Pleasant, Michigan. As of September 30, 2014, the Corporation had $1.55 billion in total assets and assets under management - which includes mortgages serviced and sold on the secondary market and assets managed by our investment and trust services department – were $2.22 billion.

The Corporation’s sole subsidiary, Isabella Bank, was established in 1903. Over the years, the bank has grown to 27 offices which are strategically located throughout central Michigan in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties. We offer a wide-array of financial services including personal and business loans, deposit accounts, and investment and trust services. In addition, we offer various electronic banking services to our business and consumer clients.

Click to read more.

OTCM: What are your competitive advantages in the mid-Michigan market?

Mr. Evans: At our core, we are a strong independent community bank. Our divisional structure empowers local decision making to deliver outstanding customer service, offer the right products and services to meet our customers’ needs, and give back to our communities. Our culture sets us apart from others. It drives the type of employees we attract, our approach to customer service, the types of products and services we offer, and the passion we have towards making our communities stronger.

OTCM: What are the challenges and opportunities you face in the market today?

Mr. Evans: The volume of new regulations, shift towards multi-channel banking preferences, consolidation in the market, and narrow interest margins are just a few examples of the challenges and opportunities we face in the banking industry. Our financial stability has allowed us to make the necessary investment in our people and technology to ensure we are ready to tackle these challenges. We are also in a position to be able to evaluate and consider expansion opportunities should they occur.

OTCM: Isabella Bank Corp. upgraded to the OTCQX marketplace in August. What motivated you to make the move?

Mr. Evans: Maximizing value for our shareholders is vital to our future success. We saw the transition to the OTCQX as an opportunity to increase our visibility in the marketplace by moving to a platform focused exclusively for investors interested in community banks. Our management and directors believe that expanding our market visibility is an important strategy for increasing the liquidity of our stock and enhancing shareholder value.

OTCM: Your company has a strong retail ownership. What is your strategy to grow your retail shareholder base?

Mr. Evans: Our strong retail ownership base is the result of our grassroots approach to marketing our stock. We routinely reach out directly to bank customers and community leaders to develop a network of advocates for Isabella Bank Corporation. Our strategy for growing our shareholder base focuses on bringing awareness to the Isabella Bank Corporation story. We have a communication plan which focuses on engaging our current shareholders and educating potential shareholders on our value as an investment. The move to the OTCQX marketplace will help us build brand awareness on a national level.

OTCM: What else should U.S. investors know about Isabella Bank Corp.?

Mr. Evans: Delivering shareholder value is important to our management and board. Our core banking principles have resulted in us being able to pay an increasing per share cash dividend to our shareholders for 33 consecutive years.

If you would like to learn more about us, please visit isabellabank.com and click on the Investors tab. You may also contact our market maker, Boenning & Scattergood, Inc. at (866) 326-8113 or boenninginc.com.

Click to close.

Light Up The Market
[photo]
Deutsche Telekom AG (OTCQX: DTEGY) Lights up the Market!

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

View OTCQX companies that Lit up the Market in November to celebrate joining our best marketplace.

ANGLE plc (OTCQX: ANPCY)
Castle Mountain Mining (OTCQX: CTMQF)
ChromaDex Inc. (OTCQX: CDXC)
First Resource Bank (OTCQX: FRSB)
Maxcom Telecomunicaciones (OTCQX: MXMTY)
Micromem Technologies, Inc. (OTCQX: MMTIF)
National Bancshares Corp (OTCQX: NBOH)
New Standard Energy Ltd. (OTCQX: NWSTF)
Monthly Trade Summary

October 2014

Marketplace Designations # of Securities* Monthly Dollar Volume Monthly Dollar Volume
per Security
YTD Dollar Volume Aggregate Market Capitalization
(in Millions)*
OTCQX® 374 $3,590,352,614 $9,599,873 $30,322,017,371 $1,480,834
OTCQB® 2,357 $5,263,844,589 $2,233,282 $56,747,845,267 $143,322
OTC Pink® 7,170 $14,546,993,498 $2,028,869 $117,084,196,059 $12,506,628
Totals 9,901 $23,401,190,701 $2,363,518 $204,154,058,697 $14,130,783
*Data as of October 31, 2014
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PRODUCT UPDATES
New Transfer Agent API

Beginning next month, SEC registered transfer agents will be able to electronically provide us with monthly information on total shares outstanding and other share information for OTCQX, OTCQB and OTC Pink companies via a direct data feed, streamlining the process by which we gather and disseminate data on the 10,000 securities that trade on our marketplaces. This process will enable investors and broker-dealers to access important share information on a timely basis that has been verified by an SEC registered transfer agent. The data will be displayed through our financial portal, www.otcmarkets.com, as well as distributed via our data feeds.

Empire Stock Transfer is the first SEC registered transfer agent to begin providing data on behalf of their corporate clients through this service. If you are a SEC registered transfer agent that is interested in learning more, please contact issuers@otcmarkets.com or +1 (212) 896-4420.
Events, Webinars & Sponsorships
News
LD Micro Conference - Los Angeles, CA (December 2-4, 2014)

SEC Government-Business Forum on Small Business Capital Formation – Washington DC (November 20, 2014)

STANY’s 2014 International Reception and Holiday Party - New York, NY (November 13, 2014)

Community Banks Webinar Series | Earnings Day Best Practices (Archived Replay)

Webinar: Cross-Trading Options in the U.S. (Archived Replay)

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

FINRA Proposal Recognizes OTC Markets Significance - Growth Capital Investor (Nov. 4, 2014)

Using Social Media to Engage Your Shareholders: What Community Banks Should KnowBankDirector.com (Nov. 6, 2014)

OTC Markets Group Approves Raymond James Financial as Corporate Broker on OTCQX – press release (Nov. 18, 2014)

OTCQX Companies to Present in Deutsche Bank ADR Virtual Investor Conference on November 19 – press release (Nov. 17, 2014)

OTC Markets Group Announces Third Quarter 2014 Financial Results – press release (Nov. 12, 2014)

OTC Markets Group Announces News Distribution Agreement with Seeking Alpha – press release (Oct. 30, 2014)

OTC Markets Group Announces Third Quarter 2014 Performance of OTCM ADR Index and OTCQX30 Index, powered by BNY Mellon Indices – press release (Oct. 27, 2014)
REGULATION & COMPLIANCE UPDATES
Proposed Rule Change for Quotation Requirements for Unlisted Equity Securities
  The SEC issued an Order Instituting Proceeding to Determine Whether to Approve or Disapprove a Proposed Rule Change relating to Quotation Requirements for Unlisted Equity Securities and Deletion of the Rules related to the OTC Bulletin Board Service. Additional information may be found here. OTC Markets Comment Letter may be found here.

SEC Adopts New Regulation SCI
  The SEC announced that it will adopt Regulation Systems Compliance and Integrity (“Regulation SCI”) under the Securities Exchange Act of 1934 (“Exchange Act”) and conforming amendments to Regulation ATS under the Exchange Act. As a critical part of our nation’s financial markets, OTC Link® ATS will be an SCI entity.  The final rule and form can be found here. The announcement can be found here.
OTCQX AND OTCQB NEW ADDITIONS
OTCQB
8 New Companies Qualified for Our Best Marketplace in October

Americann Inc. (OTCQX: ACAN)
ANGLE plc (OTCQX: ANPCY)
Embassy Bancorp Inc. (OTCQX: EMYB)
First Robinson Financial Corporation (OTCQX: FRFC)

Franklin Financial Services Corp. (OTCQX: FRAF)
Mars National Bancorp, Inc. (OTCQX: MNBP)
Parkit Enterprise Inc. (OTCQX: PKTEF)
Save The World Air, Inc. (OTCQX: ZERO)
A complete list of OTCQX companies is available on www.otcmarkets.com.


39 companies were verified to trade on OTCQB in October

Abakan, Inc. (OTCQB: ABKI)
America Greener Technologies, Inc. (OTCQB: AGRN)
Arch Therapeutics, Inc. (OTCQB: ARTH)
Bingo.com, Ltd. (OTCQB: BNGOF)
Biomerica, Inc. (OTCQB: BMRA)
Cardinal Energy Group, Inc. (OTCQB: CEGX)
China Modern Agricultural Information Inc. (OTCQB: CMCI)
China Xuefeng Environmental Engineering, Inc. (OTCQB: CXEE)
China YCT International Group, Inc. (OTCQB: CYIG)
CN Resources, Inc. (OTCQB: CNRR)
Corbus Pharmaceuticals Holdings, Inc. (OTCQB: CBPH)
CytoDyn Inc. (OTCQB: CYDY)
Ecosciences, Inc. (OTCQB: ECEZ)
Epazz, Inc. (OTCQB: EPAZ)
Freestone Resources, Inc. (OTCQB: FSNR)
Graphene 3D Lab, Inc. (OTCQB: GPHBF)
Heliospectra AB. (OTCQB: HLSPY)
Home Financial Bancorp (OTCQB: HWEN)
Iberian Minerals Ltd. (OTCQB: SLDRF)

Medizone International, Inc. (OTCQB: MZEI)
Nhale Inc. (OTCQB: NHLE)
Novation Companies, Inc. (OTCQB: NOVC)
Organigram Holdings, Inc. (OTCQB: OGRMF)
Patriot Gold Corp. (OTCQB: PGOL)
Patriot Scientific Corporation (OTCQB: PTSC)
Pulse Evolution Corp. (OTCQB: PLFX)
Quantum Materials Corporation (OTCQB: QTMM)
Rambo Medical Group, Inc. (OTCQB: RMGI)
Sport Endurance Inc. (OTCQB: SENZ)
Staffing 360 Solutions, Inc. (OTCQB: STAF)
Studio One Media, Inc. (OTCQB: SOMD)
Success Holding Group International, Inc. (OTCQB: SHGT)
Therapix Biosciences Ltd. (OTCQB: THXBY)
US Precious Metals, Inc. (OTCQB: USPR)
U-Vend, Inc. (OTCQB: UVND)
Vantage Health, Inc. (OTCQB: VNTH)
Verde Resources, Inc. (OTCQB: VRDR)
VG Life Sciences Inc. (OTCQB: VGLS)
Yappn Corp. (OTCQB: YPPN)
   
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