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September 15, 2017
 
 
Improving Access to Capital Act Passes in the House
 

We are pleased to share some exciting news regarding our ongoing efforts to expand Regulation A+ to allow SEC reporting companies the opportunity to take part in this important form of online capital raising.

In September, the bipartisan bill, Improving Access to Capital Act (H.R. 2864), sponsored by Representative Sinema and Representative Hollingsworth, passed in the House of Representatives with an overwhelming majority vote of 403 to 3.

This critical milestone brings us one step closer to improving the capital raising process for small companies and easing the burdens of entry to the public markets.

We encourage you to stay involved as this important legislation makes its way to the Senate.


Bipartisan Support for the Bill

Representative Krysten Sinema (D-AZ)
"As part of the JOBS Act, Congress directed the Securities and Exchange Commission to amend Regulation A to allow small companies to raise up to $50 million in offerings exempt from full SEC registration. These amendments, known as Regulation A+, exclude certain potential issuers, including Exchange Act reporting companies. As a result, thousands of companies that already meet the SEC's high disclosure requirements are ineligible to use Regulation A+ to cost-effectively raise the funds they need to grow and hire employees. That is why I have introduced this legislation with Congressman Hollingsworth to allow SEC reporting companies access to Regulation A+. It is a valuable pathway for small businesses to raise money in an efficient, public, and transparent manner."


Representative Trey Hollingsworth (R-IN)
"This creates another avenue for small businesses across the country to be able to raise the money that they need in order to innovate, in order to grow, in order to expand, in order to hire more Americans. This is just simply another arrow in the quiver for them to be able to grow and develop."


Representative Maxine Waters (D-CA)
"Extending Regulation A-Plus eligibility to public companies would provide them with an additional efficient method of raising a small fixed amount of capital...I support H.R. 2864 for providing targeted relief to public companies that balances their need to raise capital with the protection of their investors."


Representative Randy Hultgren (R-IL)
"This bipartisan bill will help the American economy. It will make it easier for companies, particularly small businesses, to access capital. This is incredibly important because small businesses are the heart and soul of the American economy...H.R. 2864 would amend Regulation A+ to direct the SEC to include companies that are fully reporting under the Securities Exchange Act. This will help more small businesses gain access to capital so they can grow and hire more workers. At the same time, it will give small investors greater investment opportunities."

 
 
 
EQS Group Newswire Integrated with OTC Disclosure & News Service
 

EQS Group's newswire service is now integrated with OTC Dislcosure & News Service. Press releases distributed through EQS Group by OTCQX and OTCQB companies as well as Pink companies that subscribe to OTC Disclosure & News Service will automatically also feed to OTC Markets Group's channels. Newswire services integrated with OTC Disclosure & News Service also include Accesswire, Businesswire, GlobeNewswire, Marketwired and PR Newswire. Learn more.

 
 
Is Regulation A+ an Initial Public Offering – IPO?
 

OTC Markets Blog: Regulation A+ is not a traditional IPO. Rod Turner, CEO and founder of Manhattan Street Capital, Inc. looks at the advantage of using Regulation A+ to take a company public and the option to trade the company on the OTCQX or OTCQB markets in a Guest Post. Read the full post.

 
 
 
Community Spotlight
 

Kieran McKinney,
Director of Investor Relations and Corporate Affairs

IG Group Holdings Plc. (OTCQX:
IGGHY)

"IG is a well-capitalised firm with over £700m of liquid assets and almost £200m of available liquidity at the end of our last financial year, 31st May 2017. The company generated £184m of net own funds from operations in FY17. IG held £340m in regulatory capital requirements at the end of the year and has additional debt facilities of £160m in place to cover any potential spikes in requirements. IG has a policy of paying out 70% of earnings as an ordinary dividend and it has no immediate plans to change this."

 

Read the full interview.

OTC Markets Group (OTCM): Tell us about IG Group.

Kieran McKinney: IG is a company with over 40 years of trading history. The Company was founded in 1974 and is headquartered in the City of London. IG now has a presence in 17 countries across the globe, with 1,500 staff and over 185,000 clients worldwide. IG exists to empower informed, decisive, adventurous people to access opportunities in over 15,000 financial markets. IG’s vision is to be a global leader in retail trading and investments. With a strong focus on innovation and technology, we put client needs at the heart of everything we do.

As a financial technology firm, IG is regulated in the UK by the FCA, using this licence to sell across the EU, and a further eight financial regulators worldwide, including the CFTC in the US.

IG is the world’s No. 1 provider of CFDs and a global leader in retail forex*. With a clean global regulatory record, we take our market leading position very seriously, priding ourselves in offering our products in a responsible way to only those for whom they are appropriate.

OTCM: What were recent major accomplishments for the company?

Mr. McKinney: IG has for many years been a clear leader in OTC leveraged retail trading. In recent times, the Company has expanded its offering beyond the core leveraged trading products, through the launch of execution-only share dealing and IG Smart Portfolios - a discretionary managed, risk based investment, using ETF asset allocation models based on BlackRock’s iShares. Both of these products complement IG’s core product and are designed to build longer lasting, deeper relationships with our existing client base.

During this time IG has also opened a fully licensed Swiss bank, which is performing ahead of expectations, launched an office in Dubai and built out significant operational support centres in Poland and India, focussing on technology delivery and cost effectiveness.

In late 2016 IG acquired dailyfx.com, a forex focussed news and education site with a reach of over 1.2million visitors per month. This site has a very large US following and supports our client base across the globe, including our US binary options exchange, Nadex, which offers limited risk derivative products.

IG is focussed on innovation and has a number of world firsts in its locker, a few examples being:

  • 1st online dealing platform for spreadbetting (1998)
  • 1st iOS mobile trading App (2008)
  • 1st online forex and CFD broker to offer bitcoin trading (2013)
  • 1st trading app for Apple Watch (2015)

OTCM: How does IG Group differentiate itself from its competitors and what is your growth strategy?

Mr. McKinney: Differentiation has been achieved through our focus on the needs of the client, putting fair client outcomes at the core of our corporate culture. We have also continuously invested significant resources in technology enhancements, product development, risk management tools and client education. IG has developed an excellent reputation for integrity.

We aim to build long lasting relationships with our clients and, as a result, increase the value and longevity of every relationship.

IG offers great depth in products and markets; for example we were the first CFD provider to offer trading on bitcoin in 2013 and we continually look to increase the range of markets we offer where there is the opportunity for us to offset the residual risk. With over 185,000 clients, new markets can quickly build to scale and profitability. Clients trades also create a natural hedge through the internal netting procedure, and so reduce the need to hedge externally with brokers.

IG has significant brand strength in most of the countries in which it operates, built over many years through its commitment to treating customers fairly. IG offers best execution guarantees and is currently unique in only charging clients for guaranteed stops if they are actually used. Such brand integrity takes many years to build and we believe this offers us a competitive advantage in our local markets, as word of mouth and personal recommendation is an important means of new client acquisition.

IG has grown considerably over recent years and our strategy for growth from here is multi-faceted:

  • The global market for self-directed trading and investment continues to expand – this is assisted by new financial freedoms, technological advancement and a greater level of financial confidence – often promoted by information from the internet or social media. IG expects to take at least its fair share of this market growth, and potentially a greater portion as regulatory burdens make it increasingly difficult for sub-scale providers
  • Product expansion has played an important role in IG’s growth story. We recently launched our share dealing and investments services and are rolling this out in more jurisdictions.
  • We are continuing to explore additional geographic expansion opportunities, following successful recent launches in Dubai and Switzerland
  • We are seeking to launch a multi-lateral trading facility in Europe, which will offer current and new clients the opportunity to trade our products on-exchange

OTCM: IG Group began trading on OTCQX in the U.S. in 2014. Can you talk about why you chose to join OTCQX and how this has impacted your U.S. investor relations strategy?

Mr. McKinney: The US has always been an important investor market for IG, with over 25% of our ordinary stock held by investors where the capital originates in the US. We joined OTCQX in order to round out our offering for US investors. We wish to provide US investors with the best access to IG shares. Having launched our ADR programme in association with Citi, as our depositary bank, we wanted to ensure we had the greatest transparency possible in the US and provide a real-time pricing and trading mechanism in our ADR. We are pleased with the progress we’ve made to date.

OTCM: What else do you want U.S. investors to know about IG Group?

Mr. McKinney: IG is a well-capitalised firm with over £700m of liquid assets and almost £200m of available liquidity at the end of our last financial year, 31st May 2017. The company generated £184m of net own funds from operations in FY17. IG held £340m in regulatory capital requirements at the end of the year and has additional debt facilities of £160m in place to cover any potential spikes in requirements. IG has a policy of paying out 70% of earnings as an ordinary dividend and it has no immediate plans to change this.

*Based on revenue excluding FX (from published financial statements, October 2016)

Click to close.

 
 
 
Community Spotlight
 

Thomas M. Clay, Chairman & CEO
Golden Queen Mining Co. Ltd. (OTCQX: 
GQMNF)

"As one of the few companies to have brought a new gold mine into operation in the United States in recent years, we have developed experience in permitting, financing, constructing, and operating a precious metals mine in a first world jurisdiction. We believe this puts us in a good position to do the same with similar projects, so we will evaluate inorganic growth opportunistically."

 

Read the full interview.

OTC Markets Group (OTCM): Tell us about Golden Queen Mining Co. Ltd. What do you want investors to know?

Thomas M. Clay: Golden Queen Mining is producing gold and silver on Soledad Mountain in southern California. The Company achieved commercial production in December 2016 and has been generating cash from operations to invest in expanding its mining fleet and plant infrastructure. Having reached its targeted plant throughput levels, the Company is now working to lower cash costs through mine planning and productivity programs. Soledad Mountain was the first gold mine to go into production in California in many years.

OTCM: What were some of the more recent key accomplishments for the company?

Mr. Clay: Besides achieving commercial production of gold and silver, the Company began selling nonmineralized rock from the property as aggregates, and we are enthusiastic about the possibility of large new contracts in the future. We have also commenced the process of expanding our project boundaries to include the land that we own outside of the initial permit, which could add significantly to the project’s mine life.

OTCM: How does Golden Queen Mining Co. Ltd. differentiate itself from its competitors and what is your growth strategy?

Mr. Clay: Our Company prioritizes cash flow, behaves with an owner’s mindset, and believes that value is created at the mine site. Our workforce reflects this focus, with a very lean corporate office comprised of only 4 people. Our directors, management team, and joint venture partners are highly experienced in mining and production and are dedicated to making GQM successful. Soledad Mountain has significant growth potential through permitting additional heap leach pad capacity and exploring the deposit at depth. Further, as one of the few companies to have brought a new gold mine into operation in the United States in recent years, we have developed experience in permitting, financing, constructing, and operating a precious metals mine in a first world jurisdiction. We believe this puts us in a good position to do the same with similar projects, so we will evaluate inorganic growth opportunistically.

OTCM: Golden Queen Mining Co. Ltd. began trading on OTCQX in the U.S. in 2012. Why did you choose to join OTCQX and what is your U.S. investor relations strategy?

Mr. Clay: We are on OTCQX to provide a trading platform for our shareholders based in the United States, who are a majority of our shareholder base. Our communications strategy is to focus on adding value to our project and expanding our audience internationally.

Click to close.

 
 
 
Fortress Paper Ltd.
 

OTCQX Video Series: Fortress Paper, Ltd. (OTCQX: FTPLF) Executive Chairman and Founder, Chad Wasilenkoff, joins us at the Market Center to discuss how the company turned a paper pulp mill profitable by converting it into a dissolving pulp mill, resulting in the creation of pulp for textiles. Watch now.

 
 
Deutsche Telekom
 

OTCQX Video Series: Following the recent release of Q2 results, Stanley Martinez, VP Investor Relations for Deutsche Telekom (OTCQX: DTEGF; DTEGY) visited our Market Center to provide an update on the company's performance and new product offerings helping to drive growth. Watch Now.

 
 
Monthly Trade Summary - August 2017
 
 
Market Designations Number
of Securities*
Monthly
$ Volume
Monthly $ Volume
per Security
YTD $ Volume*
 
OTCQX 408 $3,718,563,232 $9,114,125 $29,440,437,962
OTCQB 970 $1,352,674,317 $1,394,509 $14,184,800,164
Pink 8,975 $13,458,875,630 $1,499,596 $102,359,004,104
Total 10,353 $18,530,113,179 $1,789,830 $145,984,242,230
 

*Data as of August 31, 2017

 
 
Events
 

TS Partners User Conference 2017 – Atlantic City, NJ (September 5-7, 2017)

CrowdInvest Summit – Los Angeles, CA (September 6-7, 2017)

FISD Member Mixer – New York, NY (September 7, 2017)

IR Magazine Conference – Small Cap 2017 – New York, NY (September 13, 2017)

STA National Market Structure Conference – Washington, D.C. (September 13-15, 2017)

World Financial Information Conference – Barcelona, Spain (September 24-27, 2017)

Sidoti & Company Fall 2017 Conference – New York, NY (September 28, 2017)

EQS Germany Roadshow – Munich, Germany (September 29, 2017) | Frankfurt, Germany (October 5, 2017)

OTCQX Virtual Investor Conference – Webcast (October 5, 2017)

OTCQX Annual Issuers Forum – Toronto, Canada (October 18, 2017)

STA Annual Conference – Manalapan, Florida (October 23-26, 2017)

Hovde 2017 Fast Forward Conference – Phoenix, AZ (November 5-7, 2017)

World Funding Summit & Capital Expo – Los Angeles, CA (November 17-18, 2017)

LD Micro: 10th Annual Main Event – Los Angeles, CA (December 5-7, 2017)

Vancouver Resource Investment Conference – Vancouver, Canada (January 21-22, 2018)

Access North American Capital Markets – Singapore (January 23-24, 2018)

NOBLE Conference – Ft. Lauderdale, FL (January 29-30, 2018)

Please contact events@otcmarkets.com for more information.

 
 
News
 

Legislation that will Expand Scope of Reg A+ Passes the House – Crowdfund Insider (September 7, 2017)

2017 OTC Markets Group Small Cap Survey: Review of the Challenges Faced by Small Cap Companies – MaloneBailey September newsletter (September 6, 2017)

5 Takeaways from our Small Cap IR Summit Microcap Review – Stock News Now MicroCap Review (September 5, 2017)

Op-Ed: World Funding Summit in Los Angeles on November 17 and 18 has Attracted some of the Brightest Minds in the World of Alternative Finance – DCE Brief (September 3, 2017)

Novume Solutions Begins Trading on OTCQX, Boosted by Reg A+ Offer – Crowdfund Insider (August 30, 2017)

OTC Markets Group: Positive Revenue And Profit Trends   Investing.com (August 16, 2017)

 
 
New OTCQX and OTCQB Companies
 

Welcome to the companies that joined the OTCQX Best Market and the OTCQB Venture Market in August 2017.

The OTCQX Best Market
Almadex Minerals Ltd. (OTCQX: AXDDF)
GlassBridge Enterprises, Inc. (OTCQX: GLAE)
Gold Reserve, Inc. (OTCQX: GDRZF)
Novume Solutions, Inc. (OTCQX: NVMM)
Treasury Metals Inc. (OTCQX: TSRMF)

The OTCQB Venture Market
Aerpio Pharmaceuticals, Inc. (OTCQB: ARPO)
Americann Inc. (OTCQB: ACAN)
Assure Hldgs Corp (OTCQB: ARHH)
AuthentiDate Holding Corp. (OTCQB: ADAT)
Bionik Laboratories Corp. (OTCQB: BNKL)
Bravo Multinational Incorporated (OTCQB: BRVO)
Dougherty's Pharmacy, Inc. (OTCQB: MYDP)
Drone Delivery CDA Corp (OTCQB: TAKOF)
Fanlogic Interactive Inc (OTCQB: FNNGF)
Intact Gold Corp (OTCQB: ITTGF)
International Wastewater Sys Inc (OTCQB: INTWD)
Minera Alamos, Inc. (OTCQB: VGMTF)
Nevada Canyon Gold Corp (OTCQB: NGLD)
Nevada Clean Magnesium, Inc. (OTCQB: MLYFF)
Nexeon Medsystems Inc (OTCQB: NXNN)
Prize Mining Corp. (OTCQB: PRZFF)
Sharc International Systems Inc. (OTCQB: INTWD)
Snipp Interactive Inc (OTCQB: SNIPF)
Sonoro Metals Corp. (OTCQB: SMOFF)
Tanager Energy, Inc. (OTCQB: TANEF)
Vertical Computer Systems, Inc. (OTCQB: VCSY)

 
 
Graduates to an Exchange Listing
 

The following companies graduated to an exchange listing in August 2017.

 

Graduated from the OTCQX Best Market
Kirkland Lake Gold Ltd. (NYSE: KL)

 

Graduated from the OTCQB Venture Market
Aspen Group Inc. (Nasdaq: ASPU)
Citius Pharmaceuticals Inc. (Nasdaq: CTXR)
Eastside Distilling, Inc. (Nasdaq: ESDI)
Opiant Pharmaceuticals, Inc. (Nasdaq: OPNT)