OTC Markets Newsletter
OTC Markets Group News SEPTEMBER 2014
OTCQB Venture Marketplace Nears 120 Verified Companies
A Message from OTC Markets Group CEO R. Cromwell Coulson

Earlier this month, we announced the approval of the first 100 companies to trade on our OTCQB venture marketplace. Today, we are nearing 120 verified OTCQB companies. These include entrepreneurial and development stage companies in a wide variety of industries ranging from biotechnology and media to oil and gas and consumer products from the U.S. and around the world. Many of these companies have upgraded from our OTC Pink marketplace, more than a dozen are leveraging their TSX Venture Exchange or Canadian Securities Exchange listing to enhance their U.S. presence and two have joined OTCQB from NASDAQ. All of these venture companies have met new standards designed to improve marketplace integrity and enhance transparency for investors.

Click to read more.

When we conceived of the improvements to OTCQB, we focused on striking the right balance between investors’ need for increased disclosure and transparency and venture companies’ unique requirements and limited resources. A survey we conducted of OTCQB company executives had clearly indicated most companies wanted an improved marketplace with moderately higher standards and added services. The detailed feedback we received was instrumental in the creation of the new OTCQB requirements, namely: verification of a company’s officers, reporting status and shares outstanding, disclosure of promoters, and disclosure of large shareholders. We are also providing verified OTCQB companies with our premium OTC Disclosure & News Service® and free Real-Time Level 2 Quote Display Service® as a result of feedback we received.

As we improve OTCQB, we’re excited at the positive feedback we have received from issuers, advisors and investors. We are encouraged that many OTCQB companies are complying with the new standards before the deadline to enhance their standing with investors. And we are pleased to see numerous banks and other established, global and growth companies that can meet the higher standards of OTCQX, our best marketplace, start the upgrade process to trade among their peers.

Our vision of creating America’s Venture Market is becoming reality.

But there are still nearly 2,400 OTCQB companies that have yet to comply with the new standards with a majority required to comply by May 1, 2015, based on a December 31, 2014 fiscal year-end. These companies need to meet the new eligibility requirements within 120 days after their 2014 fiscal year-end date, or they will be automatically downgraded to OTC Pink where they will trade with appropriate risk controls and compliance processes as they refinance, restore or reinvent their businesses.

To learn about the improvements we are making to OTCQB and how to apply, visit the OTCQB page on our website.

We value your continued feedback and support.

-R. Cromwell Coulson

Click to close.

COMMUNITY SPOTLIGHT
[photo]Interview with Jason Paltrowitz, Managing Director and Global Head of Business Development, OTC Markets Group

This month, we speak with Jason Paltrowitz, Managing Director and Global Head of Business Development at OTC Markets Group. Mr. Paltrowitz joined the company in October 2013 after serving more than two years as a Managing Director and Segment Head at JP Morgan Chase & Co. where he managed the custody, clearing and collateral management business in the Corporate and Investment Bank division. Prior to that, he held several senior management positions at Bank of New York Mellon Corp. Mr. Paltrowitz was also a member of the board of directors at OTC Markets Group from 2008 to 2011 and helped launch the OTCQX marketplace PAL offering for ADR issuers at Bank of New York Mellon.

OTC Markets Group (OTCM): Next month will be your 1-year anniversary as Managing Director and Global Head of Business Development at OTCQX. But this isn’t your first stint at the company. How has OTC Markets Group changed since your time on the board and what have you learned in your past year as Managing Director?

Jason Paltrowitz: I joined the board in 2008 after working with our CEO Cromwell Coulson for three years on creating OTCQX. At the time, nobody would have believed we would create a Corporate Services business that companies would find valuable and that we would have the number of engaged companies that we have today.

It has been transformative to watch the evolution of our product suite and our value proposition and the success we’ve had engaging investors and other stock exchanges around the world.

Click to read more.

Going forward, we will continue to grow and create new products that people find valuable as witnessed by the launch of OTCQX for banks, the new OTCQB marketplace and our first 100 verified OTCQB companies.

We will also look at expanding our Level 1 ADR program to new industries and regions of the world and helping the Level 1 ADR community become better engaged. The recent work we have done in India indicates there is a great opportunity to open up Level 1 ADR markets in India and Taiwan, which will be one of our focuses next year.

And we intend to spend a lot of time improving our platform for our current client base, examining how we can continue to be relevant, add value, and provide features and functions that help our clients be open, transparent and connected.

OTCM: This year, OTC Markets Group introduced standards and eligibility requirements for its OTCQB marketplace with the goal of making it a better venture market for entrepreneurial and development-stage U.S. and international companies. How has the rollout been going?

Paltrowitz: The rollout is going exceedingly well. We hit 100 verified OTCQB companies ahead of schedule. Investors and corporates wanted a better venture stage marketplace, a marketplace where they can grow their businesses and climb up the investor relations learning curve to meet the higher OTCQX standards or qualify for a national securities exchange listing and distinguish themselves from the myriad company types on the OTC Pink marketplace.

One hundred companies came pretty quickly and I think 200 will come even quicker as we educate more companies and advisors on the strong value proposition.

OTCM: You also recently returned from India where you met with regulators and companies to discuss a proposal to lift restrictions on the creation of Level 1 ADRs for Indian companies. How was your trip and what is your outlook for the proposal?

Paltrowitz: The Level 1 ADR market continues to be one of our most important market segments. Seventy-five percent of all ADRs trade on our marketplaces and they account for over 60% of our total annual dollar volume. Yet, there are huge markets in the world that are still closed to U.S. investors due to the lack of a local Level 1 ADR program.

It is exciting that a country like India, which just had a very progressive election and has a very business-friendly and growth-focused administration, is looking to open its market and allow local companies to access U.S. investors and U.S. capital. If you look at the other BRIC nations, they have very vibrant Level 1 ADR markets and India was the noticeable outlier.

As India opens its borders, we are seeing Taiwan start to open up as well. I look forward to being in Taipei in October to continue those conversations.

OTCM: What else are you excited about this year?

Paltrowitz: We see opportunities on myriad fronts. We launched OTCQX for Banks this year which has been very successful and we continue to see good pipeline development and growth. And we are seeing success with the launch of our OTCQB venture marketplace with the announcement of our first 100 companies.

But what I’m most excited about is that we’re building communities; we’re building a banks community where there wasn’t one prior. We are building a venture stage and development growth community of companies that didn’t exist before. We continue to raise the bar on OTCQX, our best marketplace, and it’s exciting to see countries such as India and Taiwan, companies, and third-parties advisors take advantage of what we have created.

OTCM: We hear you’re a big soccer fan. You even went to FIFA World Cup games in Brazil this year. What was that like?

Paltrowitz: This was my third World Cup trip. It was exciting to see the USA-Germany game and Mexico versus Croatia. Now, I look forward to Euro 2016 in the south of France.

Click to close.

Light Up The Market
[photo]
Smart Capital and Tsinghua University Light up the Market during a visit to the OTCQX Market Center!

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 September to celebrate joining our best marketplace.

California Gold Mining Inc. (OTCQX: CFGMF)
Commercial National Financial Corporation (OTCQX: CNAF)
CITBA Financial Corp. (OTCQX: CBAF)
Freedom Bank of Virginia (OTCQX: FDVA)
SQI Diagnostics (OTCQX: SQIDF)
Monthly Trade Summary

August 2014

Marketplace Designations # of Securities* Monthly Dollar Volume Monthly Dollar Volume
per Security
YTD Dollar Volume Aggregate Market Capitalization
(in Millions)*
OTCQX® 361 $2,005,022,266 $5,554,078 $23,120,139,514 $1,565,958
OTCQB® 2,508 $2,547,893,692 $1,015,907 $48,131,173,849 $169,398
OTC Pink® 7,044 $10,037,390,233 $1,424,956 $89,832,000,214 $12,285,110
Totals 9,913 $14,590,306,191 $1,471,836 $161,083,313,578 $14,020,465
*Data as of August 31, 2014
Newsletter Sponsor
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MARKET DATA UPDATES
Based on feedback from our market data community, the OTC Compliance Data File has been updated to include 5 new fields: Total Shares Outstanding (TSO), TSO as-of date, Home Country Market Symbol, Home Country Market, Home Country Market Tier.

The OTC Compliance Data File provides broker-dealers and compliance/risk mitigation teams with key compliance data points:
Data on 10,000 U.S. and global securities on the OTCQX, OTCQB, and OTC Pink marketplaces.
Penny Stock, bankruptcy, shell, and caveat emptor status, as well as marketplace designations.
Delivered 2x daily in pipe-delimited format.
Click here to learn more.

For more information, contact our Market Data Services at +1.212.220.2166 or marketdata@otcmarkets.com.
Events, Webinars & Sponsorships
News
STANY’s 2014 International Reception and Holiday Party – New York, NY (November 13, 2014)

Securities Transfer Association’s Annual Conference - Manalapan, FL (October 27-30, 2014)

5th Annual Depositary Receipt Issuers' Conference, Latin America - Campos do Jordão, SP Brazil (October 22-24, 2014)

IR Magazine Think Tank Canada - Toronto (October 8, 2014)

STA National 81st Annual Market Structure Conference - Washington DC (October 1-4, 2014)

Data Transparency Conference 2014 - Washington DC (September 30, 2014)

Contact us if you are interested in meeting us at one of these events.
OTC Markets Group Welcomes NASB Financial to OTCQX from NASDAQ - press release (Sept. 19, 2014)

Freedom Bank of Virginia begins trading on new OTC marketplace - Washington Business Journal online (Sept. 18, 2014)

First 100 Venture Companies Named to the OTCQB - Growth Capitalist (Sept. 16, 2014) (subscription required)

OTC Markets to Target Companies That Raise Capital Under JOBS Act with New Venture Market - Crowdfund Insider (Sept. 15, 2014)

OTC Markets Announces First 100 Venture Stocks on OTCQB - Traders Magazine online (Sept. 11, 2014)

OTCQB® Venture Marketplace Reaches 100 Approved Companies - press release (Sept. 10, 2014)

OTC Markets Group chief woos Indian firms to list ADRs - Hindu Business Line (Sept. 5, 2014)

The Perils of Penny Stocks - Kiplinger’s Personal Finance (Aug. 31, 2014)
REGULATION & COMPLIANCE UPDATES
Reminder: UPDATE New FINRA ORF Platform
  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 is Monday, November 17, 2014. FINRA has also published a new FINRA OTC Reporting Facility (ORF) Migration Website. Frequently Asked Questions regarding the OTC Reporting Facility Migration can be found here.

Proposal to Amend Fees for the OTC Reporting Facility (“ORF”)
  FINRA is proposing to amend Rule 7710 relating to fees for the OTC Reporting Facility (“ORF”) and delete Rule 7740 (Historical Research and Administrative Reports) upon migration of the ORF to FINRA’s Multi-Product Platform. Additional information may be found here and here. Charges for the OTC Reporting Facility, OTC Bulletin Board and Trade Reporting and Compliance Engine Services can be found here.
OTCQX AND OTCQB NEW ADDITIONS
OTCQB
9 New Companies Qualified for Our Best Marketplace in August

808 Renewable Energy Corp. (OTCQX: RNWR)
ADVFN Plc. (OTCQX: IHUBY)
Cyrela Brazil Realty S.A. (OTCQX: CYRBY)
Isabella Bank Corp. (OTCQX: ISBA)
Land Securities Group Plc. (OTCQX: LSGOY)

Marquette National Corp. (OTCQX: MNAT)
Quaint Oak Bancorp, Inc. (OTCQX: QNTO)
Riverview Financial Corp. (OTCQX: RIVE)
Tribute Pharmaceuticals Canada, Inc. (OTCQX: TBUFF)

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


40 companies were verified to trade on OTCQB in August

Acology Inc. (OTCQB: ACOL)
AdvanSource Biomaterials Corporation (OTCQB: ASNB)
Amarc Resources Ltd. (OTCQB: AXREF)
American Sands Energy Corp. (OTCQB: AMSE)
As Seen On TV, Inc. (OTCQB: ASTV)
Asia Travel Corporation (OTCQB: ATSR)
Asta Holdings Corp. (OTCQB: AHDT)
Canyon Gold Corp. (OTCQB: CGCC)
China Fruits Corporation (OTCQB: CHFR)
Development Capital Group, Inc. (OTCQB: DLPM)
Dragon Jade International Limited (OTCQB: DGJI)
Ecrypt Technologies, Inc. (OTCQB: ECRY)
Encision, Inc. (OTCQB: ECIA)
FIGO Ventures, Inc. (OTCQB: FIGO)
First Robinson Financial Corporation (OTCQB: FRFC)
Gold Ridge Resources Inc. (OTCQB: GDGR)
Gold Torrent, Inc. (OTCQB: GTOR)
KollagenX Corp. (OTCQB: KGNX)
Mass Megawatts Wind Power, Inc. (OTCQB: MMMW)
Mexus Gold US (OTCQB: MXSG)

Nuvilex, Inc. (OTCQB: NVLX)
Pacific Green Technologies Inc. (OTCQB: PGTK)
Parkit Enterprise Inc. (OTCQB: PKTEF)
PetroTerra Corp. (OTCQB: PTRA)
Rainbow Coral Corp. (OTCQB: RBCC)
Rich Pharmaceuticals (OTCQB: RCHA)
Salon Media Group, Inc. (OTCQB: SLNM)
School Specialty, Inc. (OTCQB: SCOO)
Select-TV Solutions, Inc. (OTCQB: SELT)
Silver Stream Mining Corp. (OTCQB: AGSM)
Singing Machine Company, Inc. (The) (OTCQB: SMDM)
Sparta Commerical Services, Inc. (OTCQB: SRCO)
Stevia Corp. (OTCQB: STEV)
Stevia First Corp. (OTCQB: STVF)
Strikeforce Technologies, Inc. (OTCQB: SFOR)
Sugar Creek Financial Corp. (OTCQB: SUGR)
Taylor Consulting, Inc. (OTCQB: TAYO)
Techprecision (OTCQB: TPCS)
Trxade Group Inc. (OTCQB: TRXD)
TWRIT Media Group, Inc. (OTCQB: WRIT)
   
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