Securities Law USA, PC serves as Principal American Liaison (“PAL”) in helping Canadian listed companies to qualify for inclusion on the OTCQX* — the premier tier of the over-the-counter market in the United States.
To date we have helped the following companies to qualify for inclusion on the OTCQX:
- Alderon Iron Ore Corp. (ALDFF)
- American Bonanza Gold Corp. (ABGFF)
- Brazil Resources Inc. (BRIZF)
- Catalyst Copper Corp. (CATXF)
- Encanto Potash Corp. (ENCTF)
- Excelsior Mining Corp. (EXMGF)
- Oceanic Iron Ore Corp. (FEOVF)
- Red Eagle Mining Corporation (RDEMF)
- Ridgemont Iron Ore Corp. (RIOOF)
- Sundance Energy Corporation (SNYXF)
- Sunward Resources Ltd. (SNWRF)
The OTCQX helps investors to identify and distinguish the higher quality issuers that trade on the OTCQX from thousands of other issuers that trade over the counter in the United States. OTCQX listing requirements support a transparent marketplace with high quality issuers, high quality disclosure and efficient trading for U.S. investors.
Securities Law USA, PC can help you understand and navigate the OTCQX listing application process from start to finish and can provide ongoing PAL services to your company.
OTCQX has a streamlined admission process for companies that are listed on a qualified foreign stock exchange and that make their home country disclosure available in English. Listed companies are not required to be SEC registered and can instead rely on SEC Rule 12g3-2(b), the information supplying exemption, to provide disclosure to U.S. investors. The information below has been drawn from more detailed information that is available on the otcqx.com website.
OTCQX International Requirements
A foreign company must satisfy the following requirements to be admitted to trading in the United States on OTCQX International:
- Listing on a qualified non-U.S. stock exchange (e.g., TSX and TSX-V)
- Appointment of a qualified Principal American Liaison
- Current status regarding Rule 12g3-2(b) obligations and posting in English of financial and other information on the OTC Disclosure and News Service; alternatively, an SEC reporting company must be current in its reporting obligations
- Proprietary priced quotations published by a market maker in “OTC Link”
- Inclusion in the Standard & Poor’s Corporation Records or Mergent Manual for Blue Sky compliance, allowing brokers to sell the security in up to 38 states
- Total assets of $2 million
- Net tangible assets of $1 million OR net income of $500,000 OR revenue of $2 million OR global market capitalization of $5 million
- Payment of a one-time $5,000 listing application fee
- Payment of a $15,000 annual listing fee (pro-rated at time of application)
These standards also apply to a company for continued listing on OTCQX.
Maximizing Visibility with U.S. Investors
Companies list on OTCQX to expand their access to investors, engage them with quality disclosure, and provide trading transparency to stimulate liquidity. OTCQX gives non-U.S. companies a visible cross-listing to access U.S. investors without the duplicative regulatory costs required of listing on a traditional U.S. exchange.
OTCQX companies use the OTCQX platform to offer investors transparent trading, superior information and easy access through U.S. regulated broker-dealers. The OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a U.S. exchange. OTCQX provides the highest level of visibility and access to U.S. investors possible in the U.S. OTC Market.
OTCQX separates out the credible companies from the large number of economically distressed and questionable companies that trade over the counter. Companies that join OTCQX demonstrate their commitment to providing superior information to investors and maintaining the highest quality standards.
OTCQX is fully electronic and gives investors access through all major online and full-service brokerage firms in the United States. Trades are settled and cleared in the United States similar to any U.S. exchange listed stock, and trade reports are disseminated through Yahoo, Bloomberg, Reuters and most other financial data providers.
Investors can view a full Real-Time Level 2 Quote Montage for all OTCQX companies for free on otcqx.com, allowing them the opportunity to see the full market depth of their stock.
OTCQX Services to Issuers
OTCQX provides the following services to issuers:
- OTC Disclosure and News Service, which allows investor relations officers to communicate with their U.S. investor base and to access OTC Markets Groups’ OTCIQ Market Intelligence product. OTCIQ provides both real-time and historical quote and trade data and a weekly Market Report summary of trading activity, which can be distributed to directors, management and shareholders.
- Access to the OTCQX Market Center at OTC Markets Groups’ headquarters in New York City to conduct investor meetings and conferences
- Blue Sky Monitoring Service, which allows brokers to discuss and recommend a company’s stock to clients
- An established electronic quotation and trading platform with connectivity to all major U.S. broker-dealers, easily accessible for both institutional and retail investors
- A Market Services Specialist who is available to answer calls and assist with questions about a security’s trading performance and market maker information
- The ability to display detailed quote and trade information on an issuer’s website, making this information more visible for U.S. investors
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* Note: The “OTCQX” mark appearing near the top of this page belongs to OTC Markets Group Inc.