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OTC Markets Blog

Latest commentary on Market Structure, Compliance, Small Cap and Reg A+ issues, including insights on the news and trends that affect the public markets.

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Small Cap

Enhancing the Process of Online Capital Raising

As the leading market for 2,000 venture-stage companies, we spend a lot of time working with smaller issuers to solve the challenges they face accessing the benefits of the public markets. For many, having access to the cost-effective capital they need to drive growth and fuel their businesses rises to the top of their priority list. Continue reading “Enhancing the Process of Online Capital Raising”

Technology Can Help You Reach New Investors

Investor targeting is an important task for smaller companies that want to improve their liquidity and market capitalization. For these companies to grow their business, it’s essential to find efficient ways to engage the right investors.

New technology is making it easier and more cost effective to reach investors in contrast to the more traditional methods of attending roadshows and investor conferences. Continue reading “Technology Can Help You Reach New Investors”

ESOPs: The Importance of Small Company Employee Ownership

Employee Stock Ownership Plans (ESOPs) allow employees to participate in the economic performance of a company, share in corporate profits, and save for retirement.  Congress has long recognized the advantages of employee ownership by authorizing and encouraging ESOPs through favorable tax treatment.

However, current IRS regulations significantly restrict the ability of many small public companies not traded on a national securities exchange to offer ESOPs to their employees.  These outdated regulations negatively impact hundreds of qualified, U.S.-based companies on the OTCQX and OTCQB markets that collectively employ over 100,000 workers. Continue reading “ESOPs: The Importance of Small Company Employee Ownership”

Regulation A 2019 Progress Report

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”

Practice Corporate Governance to Help Achieve Your Company Goals

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”

A Snapshot of the OTCQX Advisory Council

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”

The Many Ways to Measure IR Success

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”

OTC Markets Group Introduces its Small Cap Listed Compliance Product

The small-cap equity market, which operates across listed and OTC venues, plays a vital role in the U.S. capital markets and economy.  Companies gain access to capital and investors are able to take a stake in venture stage firms. Even though small-cap equities trade both over-the-counter and on the national exchanges, there is a perception  that an exchange listing provides an air of legitimacy on a company. However, the truth is that investors and market professionals benefit from added due diligence when assessing and trading all small-cap stocks.

Continue reading “OTC Markets Group Introduces its Small Cap Listed Compliance Product”

Navigating the Critical Components Surrounding M&A

Looking to drive faster company growth? Or, considering new avenues to increase shareholder value? These may be among the reasons you are contemplating a merger or acquisition. As a small-cap company with limited resources, it can be difficult to effectively manage and execute the critical components that surround M&A. Continue reading “Navigating the Critical Components Surrounding M&A”

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