OTC Markets Provides Temporary Relief to OTCQX and OTCQB Issuers Due to Covid-19
The OTC Markets Group Inc. (the “OTC”) has announced that due to the Covid-19 pandemic, it is providing relief to certain OTCQB and OTCQX issuers until June 30, 2020. Until June 30, 2020, no new compliance deficiency notices will be sent related to having a low bid price, low market capitalization, or low market value of public float (as those terms are used in the OTCQB Standards, the OTCQX Rules for International Companies or the OTCQX Rules for U.S. Companies, as applicable). Additionally, any OTCQX or OTCQB company that has already received a compliance notice related to bid price, market capitalization, or market value of public float with a cure period expiring between March and June will automatically receive an extension until June 30, 2020, to cure the deficiency.
The OTC is also extending the implementation date for compliance with Sections 2.3(3) and 2.3(4) of the OTCQB Standards regarding having at least 50 beneficial shareholders and having a minimum public float of 10% or $2 million in market value of public float, respectively, until June 30, 2020. This extension applies only to companies that were traded on the OTCQB as of May 20, 2018, as all other companies were subject to the requirements effective May 20, 2018.
The OTC’s notices related to COVID-19 can be found at the following website: otcmarkets.com/learn/resources-for-companies-impacted-by-covid19.