Synergy Capital Markets

The OTC Markets Group, formerly known as the National Quotation Bureau (NQB), is an organization that facilitates the trade of Over The Counter (OTC) stocks and other securities. An Over The Counter stock is a financial security that does not trade on a formal stock exchange. Rather, these securities are traded through a dealer network, such as OTC Markets Group, which include electronic quoting and lower listing requirements than a formal exchange. OTC securities are highly regulated securities by FINRA and the SEC.

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The OTC Markets Group was formally established in its present form in 2010, and provides information on over 10,000 OTC securities. Presently, a network of over 100 established broker-dealers (institutions that act as a financial securities broker and/or dealers) trade on the OTC Markets system.

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The OTC Markets Group platform is segregated into 3 distinct market tiers: the OTCQX, the OTCQB, and OTC Pink. Each of these different tiers is separated based on perceived risk levels, which depend on the quality and regularity of a listed company’s reporting information and disclosures.

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OTCQX U.S.

 

The OTCQX, has the most stringent listing standards of the three OTC Markets. The OTCQX listing requirements necessitates that a company meets/follows high-level financial standards, corporate governance practices, U.S. securities law compliance practices, and must have a qualified third-party sponsor introduction.

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The OTCQX has different eligibility requirements depending on whether a firm is international, U.S. based, or a bank.

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• Bid Price: $0.25

• Market Cap: $10 Million USD

• Price Quotes by Market Makers: One

• Shareholders holding Free Trading Shares: 

  • 50 beneficial shareholders each owning at least 100 shares

• One of the Three Following points:

• Net Tangible Assets: 

  • ​$5mm: Less Than 3 Years Operations

  • $2mm: 3+ Years Operations

• Revenue:

  • ​$6 million average for last 3 years

• Bid:

  • $5.00 per share

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OTCQX International
 

• Bid Price: $0.25

• Global Market Capitalization: $10 Million USD

• Price Quotes by Market Makers: One

• Shareholders holding Free Trading Shares: 100 beneficial shareholders each owning at least 100 shares

• One of the Following Three Points:

  • Net Tangible Assets: ​

    • $5 Million USD:  ​Less Than 3 Years Operations

    • $2 Million USD: 3+ Years Operations

  • Revenue:​

    • ​$6 million average for last 3 years

  • Bid Price: ​

    • $5.00 USD​

      • Plus one of the below:​

        • Net Income: $500,000 USD​

        • Net Tangible Assets: $1 Million USD

        • Revenue: $2 Million USD

        • Total Assets: $5 Million USD

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OTCQB

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• Eligibility Requirements:

  • Not in Bankruptcy​

  • Meet minimum bid price test of $0.01

  • Be listed on a Qualified Foreign Exchange or be a U.S. reporting company (SEC, Reg A+, or U.S. Bank)

  • Submit a Letter of Introduction from a firm qualified to sponsor companies on OTCQB

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OTC Pink

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Formerly known as “The Pink Sheets,” the OTC Market Group’s “Pink” is the least regulated of the three market tiers. Branded as “Pink, The Open Market,” there are no listing requirements or standards to get listed on this exchange platform besides filing a Form 15C211.

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Companies that trade on the Pink include penny stocks, shells, distressed companies, delinquent companies, and companies that have limited their disclosure.

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