We hope you are having a great Sunday! There are a couple of regulatory items on our radar right now.

The first deals with the SEC Rule 15c2-11.  As you know, we love combing through the OTC universe for tier one quality microcap stocks, so this rule is very pertinent to a good chunk of what we cover. This particular rule deals with OTC companies that don’t consistently report sufficient financial information, a group of stocks otherwise known as “dark stocks.” The rule was originally implemented to ensure that information on a specific OTC security, as determined by the broker via filing a Form 211 with FINRA, is current, and therefore eligible for quotation. Now, on September 28, 2021, further requirements will be implemented.

  • An extension of the initial requirement for current information. Now, a company needs to continuously keep information current in order to be the subject of a public quote.
  • Instead of a broker filing a form with FINRA, OTC markets now has the authority to determine whether a company is compliant, and whether it can open the market for brokers to commence quoting.

Please see the latest SNN Network Investors Round Table, hosted by Robert Kraft, which covers this topic in detail. Present were 

See the full episode here.

The second topic deals with restrictions being put on IPOs of China-based companies that intend to list on the US capital markets. Specifically, further scrutiny is being put on these companies’ risk factor disclosures. This is a subject matter that we’ve addressed at great lengths in the past through our due diligence reports. Most recently, risk factors played a role in our investigations of UP Fintech Holdings Ltd (NASDAQ: TIGR), where we found that neither TIGR nor any of its subsidiaries hold any license(s) required to operate a brokerage business in the PRC.

Our intent is to set up a panel discussion that we can make available to our premium network in the near future. How will it affect our research going forward? Will more China bulls come out of widespread compliance? Or will China-based companies become even more clever and brash in the way they attempt to dupe US investors? 

~Maj Soueidan

If you missed the last Live Open Forum, or if you are new to GeoInvesting, no worries. You can attend the next one occurring this coming Tuesday at, August 3 at 4:15PM Eastern Time. the meeting link is below and more attendance options can be found at this calendar link.

ZOOM LINK: https://us02web.zoom.us/j/82512216646?pwd=TXlESmhDdE93RlV2WmRZTk16Slp1QT09

Meeting ID: 825 1221 6646

Passcode: 924179

See you there!

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