More “Stop Signs” On The OTC
For the last 10+ years, the OTC Markets Group has been on a mission to increase the transparency of their markets. A recent step towards increased transparency became effective earlier this month.
As of March 9, 2017, periodic 8-K/6-K filings made through the SEC’s EDGAR system are no longer considered sufficient to qualify for the Pink Limited Information category.
If a company has not filed financial reports within the last 6 months, they will now be moved to the Pink No Information category, or “Stop Sign”.
In the past, many “SEC Reporting” companies have avoided the dreaded “Stop Sign” designation by filing occasional 8-Ks while being substantially late on 10-Q and 10-K requirements.
On March 9th, 227 companies were downgraded to Pink No Information as a direct result of the change in OTC Markets’ disclosure standards.