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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.

Capital is the lifeblood of every business & there are multiple options for Small-cap companies to access it

Small-cap companies require capital to hire new employees, purchase equipment, develop new products and services and expand their operations.  And while they have multiple options when it comes to raising capital to finance their businesses, not all options are created equal.

That’s why in our third whitepaper with IR Magazine, on Small-cap company issues, we analyze the pros and cons of four common financing options: Continue reading “Capital is the lifeblood of every business & there are multiple options for Small-cap companies to access it”

Is Regulation A+ an Initial Public Offering – IPO?

By Rod Turner | Manhattan Street Capital, Inc.

This is not a traditional IPO. While you are allowed to use a Reg A+ offering to take your company public and list it on the NASDAQ or the NYSE, that is not a requirement, and it is not the path most companies will take because the reporting costs from being public on the big boards are very high.  An advantage of using Regulation A+ to take your company public to the NASDAQ or NYSE is that you can set a zero minimum for the Reg A+ itself and then if you do not meet the minimum listing capital raise for the NASDAQ or NYSE you can still complete the raise and get the capital. Then the option to uplist exists for a later date.

A more cost effective route is to list your company on the OTCQB, or the OTCQX; see below for more on this. Some companies are taking this route with a plan to uplist when they are more established. Continue reading “Is Regulation A+ an Initial Public Offering – IPO?”

Set out on a journey and make your mark… OTCQX Blue Sky Recognition Expands to 25 States

Utah recently became the 25th state to recognize the OTCQX Best Market under its “Blue Sky Manual Exemption” for secondary trading.  Just one year after Vermont first recognized OTCQX, reaching half of the 50 states marks a pivotal milestone in our quest to achieve national Blue Sky recognition.  The addition of Utah followed recent recognitions from Delaware, West Virginia, Indiana and Maine.     Continue reading “Set out on a journey and make your mark… OTCQX Blue Sky Recognition Expands to 25 States”

5 Takeaways from our Small-Cap IR Summit

As part of this year’s NIRI conference, OTC Markets Group worked with the team to organize and moderate a panel of industry experts dedicated to addressing the needs of small cap IR professionals. Continue reading “5 Takeaways from our Small-Cap IR Summit”

Challenges Faced by Small-Caps: The Results are in…

For unique insight into the small cap companies trading on our markets, we recently engaged their C-suite to shed light upon some of the challenges they face when trying to drive and increase investor interest in their stock. Between March and May of 2017, OTC Markets Group Inc. conducted a survey of 117 CEOs and CFOs at the helm of the U.S. and international companies that trade on our OTCQX and OTCQB markets.  The results of the inaugural Small-Cap Survey revealed that small-cap companies, traditionally defined as having a market capitalization of under $2 billion, are continuing to miss key opportunities to attract new investors and raise capital.  Continue reading “Challenges Faced by Small-Caps: The Results are in…”

Corporate Governance Rules of the Road

There is growing interest in the area of Corporate Governance and how companies can leverage best practices to attract investors and lower the cost of raising capital.  To provide companies with the “rules of the road” we recently hosted a webinar with Compass Investor Relations.   Continue reading “Corporate Governance Rules of the Road”

Think an IPO is the only way to access the Public Markets?

The high cost to complete an IPO onto a U.S. stock exchange – on average $2.5 million*, combined with the declining bank appetite for small-cap IPOs, is forcing many small companies to stay private longer. However, the public markets offer tremendous benefits for small-cap companies seeking to raise capital and grow their businesses. Fortunately, an IPO isn’t the only method for small companies to gain the benefits of a public market.

In our second whitepaper with IR Magazine, on Small-Cap company issues, we focus on three alternatives to the traditional IPO: Continue reading “Think an IPO is the only way to access the Public Markets?”

3 Best Practices to build an effective IR Strategy

With more than 6,000 small and micro-cap companies trading on our markets, we are uniquely positioned to understand the issues they face, and help them effectively navigate the public markets. That’s why we’ve partnered with IR Magazine to develop a Small Cap IR whitepaper series that addresses the unique challenges in navigating the public markets, including high fees and changing market structure.

A successful public market experience starts with developing a well thought out IR strategy.

The most successful small-cap companies are those that employ certain public company best practices.  For some issuers, this will require a fundamental examination of the business, its principals, goals and objectives, for others it will require getting the company’s financial house in order.

Continue reading “3 Best Practices to build an effective IR Strategy”

Leveraging the high demand of Community Bank stocks

“The OTCQX Banks Index, a benchmark for community banks traded on the OTCQX market, gained 30 percent in the past 12 months, compared to 15 percent for the S&P 500.  How can community banks leverage this positive trend and deliver greater value to their shareholders? Continue reading “Leveraging the high demand of Community Bank stocks”

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