OTCQX Rules for U.S. Premier Companies


August 17th, 2016 by Laura Anthony, Esq.

OTCQX Rules for U.S. Premier Companies

To be eligible to be quoted on the OTCQX U.S. Premier, companies must:

  • Satisfy all of the eligibility requirements for OTCQX U.S. including the corporate governance requirements discussed in prior Lawcasts;
  • Meet one of the following: (i) Market Value Standard – have at least (a) $15 million in public float and (b) a market capitalization of at least $50 million, each as of the close of business on each of the 30 consecutive days immediately preceding the company’s application; or (ii) Net Income Standard – have at least (a) $1 million in public float; and (b) a market capitalization of at least $10 million, each as of the close of business on each of the 30 consecutive days immediately preceding the company’s application; and (c) $750,000 in net income as of the company’s most recent fiscal year-end;
  • Have at least 500,000 publicly held shares;
  • Have a minimum of 100 beneficial shareholders owning at least one round lot (100 shares) each;
  • Have a minimum bid price of $4.00 per share for its common stock as of the close of business on each of the 30 consecutive calendar days immediately preceding the company’s application for OTCQX. If (i) there has been no prior public market for the company’s securities in the U.S. and (ii) FINRA has approved a Form 211 and (iii) the bid price is equal to or greater than $1.00, then the company may apply to OTC Markets for an exemption from the 30-day minimum bid price requirements, which may be granted at the sole discretion of OTC Markets. A Seasoned Public Issuer that completed a reverse stock split within 6 months prior to applying for admission to OTCQX U.S., must have a minimum bid price of $4.00 per share for its common stock as of the close of business on each of the 5 consecutive trading days immediately preceding the company’s application for OTCQX, after the reverse split;
  • Have at least $4 million in stockholder’s equity;
  • Have a 3-year operating history; and
  • Conduct annual shareholders’ meetings and submit annual financial reports to its shareholders at least 15 calendar days prior to such meetings.

To be eligible to be quoted as an OTCQX U.S. Acquisition Company, companies must:

  • Satisfy all of the eligibility requirements for OTCQX U.S.;
  • Have a minimum bid price of $5.00 per share for its common stock as of the close of business on each of the 30 consecutive calendar days immediately preceding the company’s application for OTCQX; and
  • Be subject to the reporting requirements of the Exchange Act.
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