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OTC Listing Requirements

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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. OTC Markets maintains its own tiers and listing requirements for each. 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 Market Group which include electronic quoting and lower listing requirements than a formal exchange. OTC securities are highly regulated securities by FINRA and the SEC.

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.

The OTC Markets Group platform is segregated into 3 distinct market tiers: the OTCQX, the OTCQB, and the 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.

OTCQX

The OTCQX, branded as the 'OTCQX, The Best Market,' has the most stringent listing standards of the three OTC Markets.

Noteable OTCQX companies include AcuityAds Hldgs Inc. (OTCQX: ACUIF), Nouveau Monde Graphite Inc. (OTCQX: NMGRF), and CV Sciences, Inc. OTCQB. The OTCQX has different eligibility requirements depending on whether a firm is international, U.S. based, or a bank.

OTCQX U.S. Standard Requirements	Initial	Ongoing
Penny Stock Rule	Meet one of the following exemptions detailed below: Net Tangible Assets: $5mm: Less Than 3 Years Operations $2mm: 3+ Years Operations OR Revenue: $6 million average for last 3 years OR Bid: $5; and One of the below: Net Income: $500,000 Net Tangible Assets: $1mm Revenues: $2mm Total Assets: $5mm
Bid Price	$0.25	$0.10
Market Cap	$10mm	$5mm
Price Quotes by Market Makers on OTC Link ATS	1	2 (within 90 days)
Shareholders	50 beneficial shareholders each owning at least 100 shares	50 beneficial shareholders each owning at least 100 shares

OTCQX Premier Requirements	Initial	Ongoing
Penny Stock Rule	Meet one of the following exemptions detailed below: Net Tangible Assets: $2mm OR Revenue: $6 million average for last 3 years
Bid Price	$4.00	$1.00
Stockholders Equity	$4mm	$4mm
Price Quotes by Market Makers on OTC Link	1	4 (within 90 days)
Public Float	500,000 shares	500,000 shares
Shareholders	100 beneficial shareholders each owning at least 100 shares	100 beneficial shareholders each owning at least 100 shares
Operating history	3 years
Must meet one of the following standards:
Market Value Standard:
Market Value of Public Float	$15mm	$15mm
Market Capitalization	$50mm	$35mm
OR
Net Income Standard:
Market Value of Public Float	$1mm	$1mm
Net Income	$750,000	$500,000
Market Capitalization	$10mm	$5mm

OTCQX U.S. Banks Standard Requirements	Initial	Ongoing
Penny Stock Rule	Meet one of the following exemptions detailed below: Net Tangible Assets: $5mm: Less Than 3 Years Operations $2mm: 3+ Years Operations OR Revenue: $6 million average for last 3 years OR Bid: $5; and One of the below: Net Income: $500,000 Net Tangible Assets: $1mm Revenues: $2mm Total Assets: $5mm
Bid Price	$1.00	$1.00
Total Assets	$100mm	$100mm
Market Cap	$10mm	$5mm
Price Quotes by Market Makers on OTC Link	1	2 (within 90 days)
Shareholders	50 beneficial shareholders each owning at least 100 shares	50 beneficial shareholders each owning at least 100 shares

OTCQX Banks Premier Requirements	Initial	Ongoing
Penny Stock Rule	Meet one of the following exemptions detailed below: Net Tangible Assets: $2mm OR Revenue: $6 million average for last 3 years
Bid Price	$4.00	$1.00
Total Assets	$100mm	$100mm
Stockholders Equity	$4mm	$4mm
Price Quotes by Market Makers on OTC Link	1	4 (within 90 days)
Shareholders	100 beneficial shareholders each owning at least 100 shares	100 beneficial shareholders each owning at least 100 shares
Operating history	3 years
Must meet one of the following standards:
Market Value Standard:
Market Value of Public Float	$15mm	$15mm
Market Capitalization	$50mm	$35mm
OR
Net Income Standard:
Market Value of Public Float	$1mm	$1mm
Net Income	$750,000	$500,000
Market Capitalization	$10mm	$5mm

See our full OTCQX listing requirements and standards to get listed onto OTCQX.

OTCQB Requirements

OTCQB offers early stage to fully reporting companies the benefits of being a publicly traded company. Noteable OTCQB companies including Fannie Mae (OTCQB: FNMA), Freddie Mac (OTCQB: FMCC), and CV Sciences, Inc. OTCQB

Eligibility Requirements:

Get Started with our OTCQB Listing Consulting Services to learn more about these requirements. Also, learn about Colonial's Transfer Agent Services

OTCQB U.S. Standard Requirements	Initial	Ongoing
Bid Price	$0.01 (30 calendar days before applying not applicable if filing Form 211, company is traded on Qualified Foreign Exchange at price equal to or greater than $0.01)	$0.01 (on at least one of the prior thirty calendar days)
Public Float	10% of total issued and outstanding shares	Same
Shareholders	50 beneficial shareholders each owning at least 100 shares	Same

Post-qualification Requirements (in addition to those in the chart):

If you meet the standards and requirements above, we can help you with your OTCQB listing. Please contact us.

OTC Pink

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 requirements for getting listed on the Pink are as follows:

Get Started with our OTC Pink Listing Consulting Services to learn more about these requirements. Also, learn about Colonial's Transfer Agent Services

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

Listing Fees

The application and annual fees for each of the OTC tiers are listed below:

Application Fees	OTCQX	OTCQB	OTC Pink
Application Fee	$5,000	$5,000	$1,000
Annual Fee	$23,000	$14,000 (or semi-annually $7,500)	$5,000

How to Apply

We can help guide you through the process on making your OTC listing including:

Get Started with your OTC Listing

Ready for your OTC listing? Start by completing the form below.

OTC Transfer Agent Services

As a full-service transfer agency with over 30 years of industry experience, Colonial Stock Transfer can assist your firm with getting listed on the OTC Market Group's trading platform. To speak with a professional today or learn more about Colonial Stock Transfer, please contact us.