Technical Connectivity: Limited without Dual Listing
Investor Reach: US only without dual listing, worldwide reach with dual listings
Overall Listing Project Cost €/$: 500,000
Dual Listing: Many Dual Listing Options
This London based financial hub is all about supporting smaller businesses and allowing them to grow.
Here’s what Sebastian says:
“If you are targeting US-investors this is your exchange of choice. OTCQB is the medium market segment of OTC markets and a better option than the practically defunct Pink Sheets.”
This London based financial hub is all about supporting smaller businesses and allowing them to grow.
Launched back in 2010, OTCQB is the middle-tier of the OTC markets. With an appealing New York location, this stock exchange is sought after by investors from all over the world. OTCQX vs OTCQB: The OTCQB is for early-stage companies not yet ready to qualify for the OTCQX. Companies from both the USA and internationally can take a (international) company public here, and benefit from the publicity and chance for growth that trading in ‘The Big Apple’ can lead to.
A dealer network is used to trade securities over-the-counter, instead of via a centralized exchange. The advantages of this method of trade are the promotion of equity, and the possibility for shares to raise capital through stock sales.
How to IPO on the OTCQX? Costs and method of application are considerably lower and less time-consuming than for the OTCQX, although there are still certain regulations to meet, such as up to date reporting, and completing a bid test.
There is a one-time application fee of around $2,500, as well as an annual listing price. This is considerably lower in price than many other markets, which makes this a more feasible investment option.
Benefits of trading here are there are no minimum financial standards, this is because the OTCQB replaced the Financial Industry Regulatory Authority as the main market for trading OTC securities. Therefore, shell companies, penny stocks and small foreign issues are all found here.
With an emphasis on potential growth and development, this criteria list is far less challenging than its main market counterpart, and therefore being considered for a listing here is far more likely than on other exchanges. However, certain stipulations still have to be met.
In 1700, the Hollow Sword Blade Company began a banking and securities trading business in the City of London. Today, from the same location, Swordblade & Co helps ambitious growth companies access public markets. We are proud to continue a rich, centuries-old legacy of assisting entrepreneurs in building their companies and visions.
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