OTC Markets recently announced that OTCQX companies that currently utilize the Alternative Reporting Standard (ARS) may be eligible to trade via the OTCQB Venture Market if they meet a certain temporary exemption beginning on May 18, 2017. These companies will be eligible if they do not meet the new higher OTCQX financial standards and eligibility.
Last year OTC Markets introduced new requirements in order to advance the OTCQX market in general and to also better meet regulatory standards. If companies did not comply with these standards by the beginning of January, they were forced to transition to another market.
However, OTC Markets found that these current standards do not admit companies utilizing ARS. These ARS standards were introduced in 2007, to provide companies not subject to SEC reporting requirements with GAAP-audited financial reports. OTC markets stated that they believed these ARS standards were still appropriate to allow OTCQX companies to move to the OTCQB Venture Market.
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