Currently, OTCQB market standards do not admit companies that report under ARS. OTCQX has admitted companies that make public disclosure of financial reporting and other material news under the ARS standards since its inception in 2007. OTC Markets Group introduced the ARS disclosure regime to provide companies with GAAP-audited financial reports that are not subject to SEC reporting requirements a uniform standard of disclosure that encourages compliance with federal and state securities laws requiring issuers to provide adequate current information to the public markets, including all "material" information necessary to make a sound investment decision.
OTC Markets Group believes the ARS disclosure standard is appropriate for qualifying OTCQX companies moving to the OTCQB Venture Market due to the recently heightened OTCQX qualification standards. The Company is planning a broader update to the OTCQB eligibility standards in 2017 that will allow additional companies that meet appropriate qualification requirements to follow the ARS disclosure standard, including those securities issued under Title III, Regulation Crowdfunding, and Tier 1 offerings under Title IV, Regulation A+, of the Jumpstart Our Business Startups Act (JOBS Act).
For more about the 2016 OTCQX rule changes, visit http://www.otcmarkets.com/content/doc/qx/Rules/Release/10Update.pdf.
For more about the ARS Disclosure Guidelines, visit http://www.otcmarkets.com/content/doc/OTCQXGuidelines.pdf.
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market, and the Pink® Open Market for 10,000 U.S. and global securities. Through OTC Link® ATS, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.
OTC Link ATS is operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.
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OTC Markets Group Inc., +1 (212) 896-4428, email@example.com
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SOURCE OTC Markets Group Inc.