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I need advice in regards ***** ***** a company on OTC Pink Market.

Resolved Question:

I need advice in regards ***** ***** a company on OTC Pink Market.
The company is newly incorporated in Delaware and I need to know what are the steps the company has to go through before being quoted on OTC markets.
Thank you!
Submitted: 2 years ago.
Category: US Law
Expert:  Zoey, JD replied 2 years ago.
Hello,

My name is ***** ***** I am a US lawyer.

Unlike other areas of the Over the Counter market, the Pink Market has the least amount of requirements to get quoted. You would not, for example have to make any financial disclosures with regard to the company. The Pink Market is entirely broker-driven.

However, you are unable to list your own securities on the Pink Market. You have to find a Market Maker to fill out form 211 and list them for you. You can read more about the form here. and see what information the Market Maker must provide to show compliance with Securities and Exchange Commission (SEC) Rule 15c2-11.

The term Market Maker is synonomous with Broker-Dealer. Broker-Dealers must be registered with the US Securities and Exchange Commission and approved by the Financial Industry Regulatory Authority (FINRA). There is a relatively small list of Broker-Dealers who quote and trade OTC securities. They may or may not be willing to take you on. You can find a list of those who purportedly are interested in new businesses here.
Customer: replied 2 years ago.

Hello,

Thank you for your reply.

I had already contacted the brokers listed on OTC website.

However, none of them expressed interest in quoting my company on OTC Pink Market.

In your opinion, do you think there is any specific reason why they refused me? Might this be because my company is newly incorporated?

Do market makers request a fee to list the company on OTC?

Technically, any broker that is authorized by FINRA and US SEC, working within the US will be able to quote my company on OTC, am I right?

I was thinking about a reverse merger, but acquiring a company that is currently trading on OTC would cost me more thank $40k.

Do you have any suggestion for me?

Thank you,

Rob

Expert:  Zoey, JD replied 2 years ago.
I really can't say why they weren't interested. It certainly could have to do with the age of the company. Companies do not pay fees to be quoted. Brokers make their monies on the trades. You are correct that any broker authorized by the SEC and FINRA can quote your company on OTC if they wish to.

For more options, I suggest perhaps posting a new question on the US site rather than here on the UK site. You would have to join that site separately, but on JustAnswer.com there are a large number of US lawyers who specialize only in business law and can give you a more detailed analysis of your situation than here on the US law category on the UK site, where there are far fewer US lawyers.
Zoey, JD, Criminal Defense Lawyer
Category: US Law
Satisfied Customers: 24990
Experience: Over 20 years of high volume criminal defense work,including all aspects of a case from arraignment to plea or trial.
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