OTC Business Solutions
New York Ft. Lauderdale
Los Angeles
954-254-9064
The highest priced and most sought after public shells that trade on the Over the Counter (OTC) market for reverse mergers are OTC Bulletin Board Shells or OTC BB's.
The OTC Bulletin Board is also a centralized quotation system and is operated by the National Association of Securities Dealers (NASD) and requires that all companies whose stock is traded on the OTC Bulletin Board (or NASDAQ or AMEX) maintain their current reporting status with the Securities and Exchange Commission (SEC), including current audited financial statements. OTC Bulletin Board Shells, like Pinks and Greys, exist in trading and non-trading varieties.
Bulletin Board Companies are highly desirable because they are a reporting entities and subject to all the reporting requirements of the SEC. They are required to be "transparent" in their operations so that investors can make an informed decision before investing. In addition, merger candidates can assess the value of the stock being used to acquire them.
Also like Pinks, OTC BB Shells are part of the National Quotation Bureau and not a Self Regulatory Organization (SRO). Accordingly, they are not bound by the additional rules and regulations of SRO's regarding operations and dependence of directors; the requirement to maintain a separate audit committee; and the requirements to hold annual meetings while satisfying proxy requirements, all of which requirements are governed by state law.
There are no actual listing requirements associated with Bulletin Board Shells; for example the Bulletin Board does not set thresholds regarding number of shareholders; assets; market capitalization and share price. The fundamental difference between a Bulletin Board and a Pink Sheet or Grey Sheet is the reporting requirements. While Pinks and Greys are non-reporting entities, a Bulletin Board is subject to the reporting requirements of the Securities Exchange Act of 1934 including but not limited to annual reports on Form 10K, quarterly reports on Form 10Q and current reports on Form 8K.
