Moving Up after Going Public: From OTCBB/OTCQB to OTCQX

Moving Up after Going Public

Your company has to start at lower trading exchanges first.

For many companies going public that start on the OTCBB/OTCQB, their goal is to move up to a higher market.  One higher market is the OTCQX.

Getting a Ticker Symbol on the OTCQX preliminarily requires the same three things as the OTCBB/OTCQB:

  1. You have to have free trading stock.
  2. You have to become an SEC reporting company, meaning a company that is required to file reports under the 1934 Act.
  3. You have to have the Financial Institution Regulatory Authority, called FINRA, issue you a Ticker Symbol. The SEC does not issue ticker symbols.  We discussed this in prior blog posts.

The OTCQX has the following listing standards in addition to the OTCBB and OTCQB:

  • Ongoing operations (no shells, blank check or special purpose acquisition companies);
  • A minimum bid price of $0.10 (for preceding 90 business days);
  • The company may not be subject to any bankruptcy or reorganization proceedings;
  • The company must be duly organized, validly existing and in good standing under the laws of each jurisdiction in which the company is organized;
  • At least 50 beneficial shareholders, each owning at least 100 shares of the Company’s common stock;
  • Ongoing quarterly and audited annual financial reports posted on OTCQX.com, a premier website for qualifying companies (SEC Registered issuers can use EDGAR); and
  • Inclusion in the Standard & Poor’s Corporation Records or Mergent Manuals (Moody’s Manuals), which satisfies the Blue Sky requirements for secondary transactions in many states, together with a list of any other states in which the security is Blue Sky compliant and eligible to be sold by brokers in those states;
  • DAD Letter of Introduction upon application process completion and quarterly and annually thereafter to OTC Markets Group Inc. confirming that the issuer has made adequate current information publicly available and meets the tier inclusion requirements.

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