Mina Mar Group (MMG) focused on small-cap issuers quoted on OTC Markets announces the launch of its exit the expert market services.
WEST PALM BEACH, FLORIDA, UNITED STATES, – Mina Mar Group (MMG) minamargroup.com a mergers and acquisitions firm (M&A) focused on small-cap issuers quoted on OTC Markets announces the launch of its exit the expert market services. The services will include and assist small-cap OTC quoted companies demoted to the expert market to rescue its quotation services. This product is ideal for companies that have been targeted for not having the funds or the knowledge on how to remain current with the new OTC markets rules, which were announced and came into effect September 28 202;1 and commenced at about 6 pm EST on September 27 2021 catching many issuers off guard. Mina Mar Group approach is a win-win solution for all parties with the focus on assisting shareholders, stakeholders and investors.
Here is what took place on September 28, 2021 and why many CEO’s are up in arms trying to find a solution to comply with new SEC rules and new OTC markets compliance to comply with such rules:
The Securities and Exchange Commission (SEC) revised Rule 15c2-11 under the Securities and Exchange Act in September 2020, updating the legal structure and regulatory status of OTC stock markets. Rule 15c2-11 establishes the standards for public quoting in OTC stocks and acts as a regulatory gateway to the public markets. This prompted the downgrade of many companies not in compliance which affected many companies and shareholders simultaneously.
This is why if an OTC issuer’s securities fail to comply with Rule 15c2-11, they will be delisted from the Grey Market. If there are no published quotations for a stock for four trading sessions in a row, this happens automatically. (In the final regulation, an extra condition that the stock is listed on at least 12 days in the prior 30 calendar days was removed.) The Grey Market, dubbed the “penny stock cemetery” by some, has a long history of being very illiquid. Thus making it impossible for investors that purchased shares to liquidate their position.
In many cases, the CEO of a start-up pubco that has been downgraded has limited resources for paying fees that render them compliant opting instead to pay for staff payroll, rent, and supplies. Having said this there are cases of fraud that the SEC is attempting to discourage hence the new rules. At the same time and rightfully so there is a need for transparency that is demanded by investors on these speculative but often profitable stocks.
A Company spokesperson said “While speaking with the leaders of MMG we realized that this well-versed team that proved their expertise in overcoming the critical situations in the public arena for almost two decades has found the perfect solution for the current crisis some of these companies are facing. When companies are downgraded shareholders are indirectly punished by such actions. Mina Mar however has a solution that will mitigate this issue and render these types of companies compliant and out of this grey or expert market position. Companies that fall under the category of grey or expert markets need to move to the OTCQB markets if they wish to continue to be viable companies in the public arena. Mina Mar will assist the right companies that have been downgraded due to lack of funding to meet the regulators demands by funding companies that meet the criteria established by Mina Mar thus providing them with the ability to reach the OTCQB status so that shareholders can invest assisting with the growth of the company and liquidate their position as needed”.
If you are a shareholder stuck with an issuer that was demoted to the “expert market” please feel free to check our free database and the status of many issuers. We will provide further updates on this expansion via our Friday’s Tips email alerts which a reader must subscribe to receive. www.minamargroup.net You may also visit our website www.minamargroup.com if you have been downgraded and need assistance with your company by completing the online form under the Expert Market tab.