US Pink Sheets

The stated and un-stated listing requirements for the US Pink Sheets are as follows:
  • minimum requirement of 25 stockholders of record holding one board lot each
  • not a blank check company,
  • current financial information must be available to market makers and stockholders,
  • foreign companies must have applied as exempt issuers under 12g3-2b with the SEC,
  • must have a market maker submit 15c211 application to NASD and agree to act as market maker for securities of company.

    • Management of the PinkSheets have become much more aggressive in the last two years in recruiting new companies to trade on the PinkSheets.  It is, however, becoming more difficult for once active now inactive companies to be quoted on the Pink Sheets.

    There is no difference in the trading system currently used by the OTCBB and the Pink Sheets.  The Pink Sheets are currently where the OTCBB was three years ago prior to the OTCBB requiring all companies quoted on the OTCBB to be fully reporting issuers under the Securities Act of 1934 with the SEC.  Quotes for PinkSheet companies are available on the Internet on almost all quotation services.

    There are a number of advantages to micro-cap companies in particular listing on the Pink Sheets.  The greatest advantage is that companies are not required to go through the expense of filing a registration document with the SEC and maintaining that registration.  Non-reporting issuers are also exempt from the corporate governance requirements of Sarbanes Oxley.  Management therefore can focus on developing the business of the company instead of trying to meet ever increasing regulatory standards which do not always fairly apply to micro and small cap companies.