OTCBB Suspension of Late Filers - 3 Strikes Rule - 0 views

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  #1 Marie Hedegaard on 15 Aug 12

   

  On May possibly ten, 2005, the National Affiliation of Securities Dealers, Inc., now identified as the Financial Business Regulatory Authority ("FINRA"), by way of its subsidiary, the Nasdaq Stock Industry, Inc. ("Nasdaq"), submitted with the Securities and Trade Commission (the "Commission") a proposed rule modify to limit the eligibility for quotation on the OTCBB of the securities of an issuer that is continuously late in submitting required periodic stories. This is known as the "3-strikes rule."
  
  On November sixteen, 2005, the Commission accredited the change to Rule 6530 (the "Eligibility Rule").
  
  The rule change helps make individuals OTCBB issuers that are delinquent three times in a 24-thirty day period interval, and these OTCBB issuers that are eliminated for failure to file two times in a 24-thirty day period period of time, ineligible for quotation on the OTCBB for a period of time of a single calendar year subsequent their elimination. Stories filed inside of the extension period of time allowed by SEC Rule 12b-twenty five are thought of timely submitted.
  
  Historically, NASDAQ has documented that approximately 80% of issuers obtain compliance inside of the grace period, but that twenty% of issuers fall short to comply and are sooner or later de-listed.
  
  After taken off, the issuer can not re-listing on the OTCBB for a period of at least 1 year, and should file at the very least 1 Sort 10-K and a few Varieties ten-Qs. If at any time prior to currently being relisted, the issuer is late in submitting a periodic report, the 1 year time period restarts.
  
  If an issuer is late with much more than 1 submitting in a row, the sequence of late filings will only count as one particular "strike" right up until this kind of time as the issuer gets back again recent in its filings. Since of this, there is some strategy in how you get back again current once you have grow to be delinquent in a submitting. For illustration, if an issuer has missed a filing and has had an "e" appended to their stock symbol, there will be a temptation to file the delinquent filing as before long as achievable to get the "e" taken off. Nevertheless, if it is very likely that the following submitting will also be late, the issuer might consider ready and performing equally filings at the identical time in order to incur only one "strike" underneath this new rule amendment. This strategy has to be weighed from the possibility that, following the "e" period, the issuer will need to submit a new Sort 211 to transfer back up to the OTCBB from the Pink Sheets.
  
  NASDAQ carried out the proposed rule in relationship with filings for periods ending on or right after October one, 2005. Delinquent filings prior to that interval do not count in the direction of the new rule.
  
  
  
  
  REFERENCES:
  
  http://www.ambravallo.com/Art/303907/64/How-Competent-Is-Your-Lawyer.html
  
  http://www.chainarticles.com/48184/24/Did-You-Hire-A-Competent-Lawyer.html
  
  http://www.goodinfohome.com/Art/744626/28/Pinpointing-The-Competence-Level-of-Your-Lawyer.html

   

  <div class="cArrow"> </div><div class="cContentInner">On May possibly ten, 2005, the National Affiliation of Securities Dealers, Inc., now identified as the Financial Business Regulatory Authority ("FINRA"), by way of its subsidiary, the Nasdaq Stock Industry, Inc. ("Nasdaq"), submitted with the Securities and Trade Commission (the "Commission") a proposed rule modify to limit the eligibility for quotation on the OTCBB of the securities of an issuer that is continuously late in submitting required periodic stories. This is known as the "3-strikes rule."<br /><br />On November sixteen, 2005, the Commission accredited the change to Rule 6530 (the "Eligibility Rule").<br /><br />The rule change helps make individuals OTCBB issuers that are delinquent three times in a 24-thirty day period interval, and these OTCBB issuers that are eliminated for failure to file two times in a 24-thirty day period period of time, ineligible for quotation on the OTCBB for a period of time of a single calendar year subsequent their elimination. Stories filed inside of the extension period of time allowed by SEC Rule 12b-twenty five are thought of timely submitted.<br /><br />Historically, NASDAQ has documented that approximately 80% of issuers obtain compliance inside of the grace period, but that twenty% of issuers fall short to comply and are sooner or later de-listed.<br /><br />After taken off, the issuer can not re-listing on the OTCBB for a period of at least 1 year, and should file at the very least 1 Sort 10-K and a few Varieties ten-Qs. If at any time prior to currently being relisted, the issuer is late in submitting a periodic report, the 1 year time period restarts.<br /><br />If an issuer is late with much more than 1 submitting in a row, the sequence of late filings will only count as one particular "strike" right up until this kind of time as the issuer gets back again recent in its filings. Since of this, there is some strategy in how you get back again current once you have grow to be delinquent in a submitting. For illustration, if an issuer has missed a filing and has had an "e" appended to their stock symbol, there will be a temptation to file the delinquent filing as before long as achievable to get the "e" taken off. Nevertheless, if it is very likely that the following submitting will also be late, the issuer might consider ready and performing equally filings at the identical time in order to incur only one "strike" underneath this new rule amendment. This strategy has to be weighed from the possibility that, following the "e" period, the issuer will need to submit a new Sort 211 to transfer back up to the OTCBB from the Pink Sheets.<br /><br />NASDAQ carried out the proposed rule in relationship with filings for periods ending on or right after October one, 2005. Delinquent filings prior to that interval do not count in the direction of the new rule.<br /><br /><br /><br /><br />REFERENCES:<br /><br /><a href="http://www.ambravallo.com/Art/303907/64/How-Competent-Is-Your-Lawyer.html" rel="nofollow">http://www.ambravallo.com/Art/303907/64/How-Competent-Is-Your-Lawyer.html</a><br /><br /><a href="http://www.chainarticles.com/48184/24/Did-You-Hire-A-Competent-Lawyer.html" rel="nofollow">http://www.chainarticles.com/48184/24/Did-You-Hire-A-Competent-Lawyer.html</a><br /><br /><a href="http://www.goodinfohome.com/Art/744626/28/Pinpointing-The-Competence-Level-of-Your-Lawyer.html" rel="nofollow">http://www.goodinfohome.com/Art/744626/28/Pinpointing-The-Competence-Level-of-Your-Lawyer.html</a></div>

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