>>Hmmm ... Well they have all their filings up to date. Do not know why they would get an "E"<<
Based on the recent experience of Advanced Systems Intl. (ADSN), I can tell you that there are many steps to the process for a stock to stay off / come back from the PINK sheets (gaining an "E" at the end of their symbol).
I am not sure where this stock fits in this process, however a company who has filed their initial submission of their form 10 has a few more steps to take before they are out of the woods.
The regulators have period of time where they review the filing. Then they compile a list of questions and clarifications they want the company to answer. Then the company has to pull these together. If the regulators are happy, then they are given the green light. If the regulators want more information, then the process continues until they are satisfied or they make a decision to list or not to list a company.
If this process takes the company beyond the date for when they are to comply (the scheduled de-listing date), then they are officially moved off the OTC and begin to trade on the PINK sheets. This will happen even if they have done everything asked of them and they are just waiting for the regulators to approve / review the answers they have submitted. Once they do satisfy the regulators, then they will be given approval to start to trade on the OTC again. Unfortunately there is still more fun and games ahead for them. They will then have to ensure that all of the MM's are notified, and they will have to make sure that they (the MM's) send in all the appropriate paperwork to their regulatory body to begin to trade the stock again. The company will need two of their MM's to have applied in order to bring up the full Bid and Asks when it starts to trade again. Unfortunately, this process can still take some weeks even if the MM's complete the forms quickly.
Now, I want to qualify my comments in that the SEC and the MM's may have streamlined their processes now. After all, they have had some practice with the first group of companies who had to unfortunate luck to be at the head of this alphabetical hit list (eg. ADSN)
Fortunately, or unfortunately for us as investors, this scenario is definitely in the cards for any company who is facing the PINK sheet purgatory. I still believe that this process is a good one, as it will separate the real companies from the shells. I just wish the process was a little more streamlined.
Thankfully, ADSN made it through this process and was one of the first, if not the first, company to become re-listed.
Hope this helped to explain this issue.
Crazy Canuk |
