As it stands now the SEC will stop all buying and selling of stock for PINK listed companies in Sept. 2021. My questions: 1. Would these be written off your taxes as a loss? 2. What happens to any shorts? 3. Is there a way to take advantage of the situation?
No, they will not be stopping all buying and selling for Pink sheets. They are requiring that pink sheets comply with new disclosure guidelines. If your company fails to properly disclose its details then you get delisted. The upcoming implementation of amended SEC Rule 15c2-11 will require that all companies quoted on our markets must disclose current information on a continuous basis, effective September 28, 2021. Pink companies will need to update their disclosure to ensure they comply with the new requirements. Alternative Reporting Companies: OTC Markets has updated the Disclosure Guidelines for Alternative Reporting Companies to include all the information required under amended Rule 15c2-11. Companies must follow the Guidelines to be designated “Current Information” or “Limited Information” and remain publicly quoted. Bank Reporting Companies: OTC Markets has created new Disclosure Guidelines for Bank Reporting Companies to include all the information required under amended Rule 15c2-11. Banks and bank holding companies must follow these Guidelines to be designated “Current Information” or “Limited Information” and remain publicly quoted. International Reporting Companies: Companies that are current in their periodic disclosure and are listed on a Qualified Foreign Exchange that requires disclosure in English will remain in compliance and may continue to be publicly quoted. Other international companies seeking to ensure their ongoing compliance may publish their disclosure directly to OTC Markets for review. Impacted Pink companies should provide the required disclosure to OTC Markets by June 30th. This will ensure that our Issuer Compliance Team has sufficient time to review and update market status for companies prior to the rule’s compliance date on September 28th. Securities that do not meet the Rule’s disclosure standard will have their public quotes removed from Pink as of the September deadline.
Thank you. I was under the impression that the reason they were in the PINK was because they weren't doing the necessary reports. So once they get the reports current why would they still be considered pink? Or maybe there will still be pink, but they aren't fully compliant? Is this just the SEC moving the bar slightly higher to remain pink?
Correct. If you want your shares tradable on a recognized and regulated exchange, you need to provide a bare minimum showing that you are not a complete scam. Not that scams will be completely blocked, many of the pinks will still be doodoo, but at least they need to report.
