Born out of the 2012 JOBS Act, Regulation A (Reg A) was amended to provide a streamlined pathway for companies to raise up to $50 Million while benefiting from general solicitation, ‘testing the waters’ and state Blue Sky preemption. SEC reporting companies were originally excluded from using Reg A; however, in January 2019, the SEC adopted new rules to expand Reg A to SEC-reporting companies, enabling public companies to raise capital in a similar manner to a traditional IPO via an S-1 registration or an S-3 shelf registration. Continue reading “Regulation A 2019 Progress Report”
OTC Markets Group recently announced the acquisition of QaravanSM Inc., a leading provider of innovative software and risk & performance analytics tailored to the banking industry.
We sat down with Tony Hodson, now the Senior Vice President of Market Data at OTC Markets Group, to learn more about how bank data and analytics have evolved over time. Continue reading “A Conversation with Qaravan Founder Tony Hodson”
Although more commonly associated with larger firms, corporate governance is just as important for small and micro-cap companies.
By adhering to high governance standards, small-caps are better placed to achieve their goals and attract new investment. Continue reading “Practice Corporate Governance to Help Achieve Your Company Goals”
The Genesis/Birth of CECL
After the 2008 financial crisis, much of the focus on the regulation of financial institutions shifted to mitigating systemic risk. This included an increased focus on stress testing and the recapitalization of institutions—both intended to help ensure solvency and insulate the global economy from further erosion. Continue reading “CECL: Unpaved Road Ahead”
This month we’re pleased to celebrate the 5-year anniversary of the successful launch of OTCQX for Banks. In May 2014, and with ten founding member banks at inception, OTCQX Banks was created to provide U.S. regional and community banks the opportunity to communicate their value proposition through a more cost-effective alternative. OTCQX Banks’ comprise some of the most established institutions, leveraging the OTCQX Market to provide the benefit of the public markets to their investors without the cost and complexity associated with trading on a traditional exchange. Continue reading “May Marks the 5th Anniversary of OTCQX Banks”
Oscar Wilde once wrote that “Everything popular is wrong.” He was describing our natural tendency to find comfort with well-established people and widespread ideas. Regulators, faced with the opportunity to open markets to alternative choices, hear a chorus of respected voices resistant to change. The SEC took until the year 2000 to repeal Rule 390—the rule that gave the New York Stock Exchange a monopoly in trading Blue Chip securities. The principles of open, transparent and connected public markets prevailed.
We raise this as the old idea underlying Rule 390, centralization of trading, is now being pushed as a popular fix for small company liquidity and capital formation. Of course, individual traders are determined to make trades in many different places, which means government intervention would be required to force stock trading back onto the largest stock exchanges. Rent-seeking regulations are often cloaked in the language of “reform” and the public good.
Since its inception in 2015, the OTCQX Advisory Council has provided valuable insight and support to the OTC Markets Group senior management team on key issues that impact OTCQX-traded issuers and the public markets. The Council is comprised of a ten-member board, with three members appointed in 2018 and seven new members appointed earlier this year. Collectively, these Council members represent an impressive mix of U.S.-based CEOs and CFOs from a diverse range of geographic and industry sectors. Continue reading “A Snapshot of the OTCQX Advisory Council”
Are you a Small-Cap company trying to ensure your IR program is successful?
Issuers with a market capitalization under $1 bn often lack the liquidity, volume or capital structure to attract larger institutional names. However, in the early years, they also benefit from being able to build strong investor relations strategies and establish trajectories that look five years ahead vs. one or two. Continue reading “The Many Ways to Measure IR Success”
Banking regulation tends to be a partisan issue, but there’s one thing lawmakers are certain to agree on: America’s community banks are the backbone of the country’s economy.
Community banks serve a unique purpose. These institutions make over half of all U.S. small business loans, providing capital to entrepreneurs seeking to start businesses, and the financing needed for local businesses to grow. They provide jobs, help families buy homes and serve as the financial core for communities nationwide. Continue reading “Community Bank Regulations Should Foster Main Street Growth”