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OTCQB® Venture Marketplace Reaches 100 Approved Companies

Sep 10, 2014

OTC Disclosure & News Service

- OTCQB® Venture Marketplace Reaches 100 Approved Companies

OTCQB® Venture Marketplace Reaches 100 Approved Companies

OTC Markets Group's improved OTCQB marketplace with standards and eligibility requirements gaining strong support from companies and investors

PR Newswire

NEW YORK, Sept. 10, 2014 /PRNewswire/ -- OTC Markets Group Inc. (OTCQX: OTCM), operator of financial marketplaces for 10,000 U.S. and global securities, today announced it has approved its first 100 U.S. and international companies to trade on OTCQB®, the venture marketplace for entrepreneurial and development stage companies.  The 100 companies have met new standards that are designed to improve marketplace integrity and enhance transparency for investors.   

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On March 26, OTC Markets Group introduced standards and eligibility requirements for OTCQB with the goal of making it a better venture marketplace.  To be eligible, companies must be current in their reporting to a U.S. or foreign regulator, pass a minimum bid price test of one penny ($0.01) and undergo an annual verification and management certification process providing additional information about the company's insiders, advisors and share count.  Companies that are approved to trade on OTCQB receive access to additional premium services to help them build visibility and improve transparency for investors including the OTC Disclosure & News Service® and free real-time Level 2 quotes.  OTCQB companies that do not meet these requirements are downgraded to the OTC Pink® open marketplace where they can trade at no cost, with simplified rules while they refinance, reactivate or reinvent their businesses.

"We are excited about the tremendous positive feedback we have received from companies and investors about the improvements to our OTCQB marketplace," said R. Cromwell Coulson, President and CEO of OTC Markets Group.  "With these changes, we are building a true American venture market to help support entrepreneurial companies as they build their businesses, access public capital markets and increase visibility with investors worldwide."

Highlights of First 100 Verified OTCQB Companies:      

  • $11.4 million median market capitalization
  • 30 companies upgraded to OTCQB from OTC Pink
  • 66 were approved to continue trading on OTCQB
  • 91 are headquartered in the U.S.
  • 9 are non-U.S. companies listed on a qualified foreign venture exchange such as the TSX Venture Exchange and Canadian Securities Exchange
  • One company joined OTCQB from NASDAQ
  • Feature a wide variety of industries, including biotechnology, media, technology, mining, oil and gas, food and consumer products

"As companies raise capital and go public under the JOBS Act, we anticipate they will use OTCQB as a stepping stone to OTCQX, our best marketplace, as well as to NASDAQ and the New York Stock Exchange," continued Coulson.  "OTCQB offers an efficient entry into the public markets for entrepreneurial companies that are committed to creating value for their shareholders."

Companies traded on OTCQB as of May 1, 2014, are required to comply with the new OTCQB marketplace standards within 120 days after their 2014 fiscal year-end date.  Approximately 2,400 OTCQB companies face deadlines for compliance over the next 10 months with the majority required to comply by May 1, 2015.  By July 30, 2015, all OTCQB companies that cannot or choose not to comply with the new standards will be downgraded to OTC Pink. 

For a list of the 100 verified OTCQB companies, visit http://www.otcmarkets.com/content/doc/otcqb/list91014.pdf.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates Open, Transparent and Connected financial marketplaces for 10,000 U.S. and global securities.  Through our OTC Link® ATS, we directly link a diverse network of broker-dealers that provide liquidity and execution services for a wide spectrum of securities.  We organize these securities into marketplaces to better inform investors of opportunities and risks – OTCQX®, The Best Marketplace; OTCQB®, The Venture Marketplace; and OTC Pink®, The Open Marketplace.  Our data-driven platform enables investors to easily trade through the broker of their choice at the best possible price and empowers a broad range of companies to improve the quality and availability of information for their investors.  To learn more about how we create better informed and more efficient financial marketplaces, visit www.otcmarkets.com.

OTC Link ATS is operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.

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SOURCE OTC Markets Group Inc.

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The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.