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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: jhild who wrote (43516)	5/15/2000 7:40:00 AM
From: ColleenB	Read Replies (1) \| Respond to of 43774

this article was posted on the bull and should be posted here as well......http://www.dimgroup.com/OTC/pinks-otc.html From Pinks To the OTC-BBÿÿÿÿ May 12,2000 BACKGROUND The OTCBB is a quotation medium for issuers that are not listed on a major exchange. On January 4, 1999, the SEC approved the OTCBB Eligibility Rule. Securities quoted on the OTCBB would have to become fully reporting to maintain their ability to be quoted on the OTC-BB. We are nearing the end of the phase-in period for companies to become fully reporting. Of the 6000+ companies that were quoted on the OTC-BB prior to the reporting requirements we expect more than half will no longer be quoted. The companies that are no longer quoted on the OTC-BB are now quoted on the Electronic Pink Sheets. Many issuers have used the form 10sb as their initial form to become fully reporting. The SEC must accept the form without comments for a company to be considered fully reporting. Often the SEC will return the form to the issuer with comments requiring the issuer to submit a subsequent (Amended) 10sb filing. Dimgroup.com has been maintaining a daily listing in our OTC section of all new and amended 10sb filings. Most micro investors agree there is more benefit to an issuer that is quoted on the OTC-BB versus only the Pink Sheets. Public Quotes are more readily available and the issuer is fully reporting often resulting in the company having a larger following. Most investors want to know what the chances are for a company delisted from the OTC-BB to regain their quoted status. In addition how long does it take once they submit their initial 10sb. The numbers below analyze companies that were on the pinks and delisted from the OTC-BB when they submitted their 10sb to the SEC. Month of Filing January 2000 January 2000 Type of filing: Initial 10sb Amended 10sb Results 29% of these are back on the OTC-BB 71% of these still on pink sheets 56% of these are back on the OTC-BB 44% of these still on pink sheets Month of Filing February 2000 February 2000 Type of filing: Initial 10sb Amended 10sb Results 0% of these are back on the OTC-BB 100% of these still on pink sheets 41% of these are back on the OTC-BB 59% of these still on pink sheets Month of Filing March 2000 March 2000 Type of filing: Initial 10sb Amended 10sb Results 0% of these are back on the OTC-BB 100% of these still on pink sheets 23% of these are back on the OTC-BB 77% of these still on pink sheets Month of Filing April 2000 April 2000 Type of filing: Initial 10sb Amended 10sb Results 0% of these are back on the OTC-BB 100% of these still on pink sheets 7% of these are back on the OTC-BB 93% of these still on pink sheets Special Notes January & February percentages were as of April 29,2000. March & April numbers percentages were as of May 05,2000. Only companies that were publicly traded at the time of filing were reviewed. No non-trading companies that completed 10sb filings were considered. While there were a few "blank check" companies that were publicly traded and reviewed they comprised a very small percentage. Analysis 71% of companies that filed only one 10sb since January 2000' are still on the pink sheets. Most companies will need to complete an Amended 10sb before being considered fully reporting. Comments From the SEC It is not uncommon for companies to receive over 20 comments from an initial 10sb filing. These comments or points of clarification can include any number of questions pertaining to all facets of the 10sb. Some involve share structure questions, others look for more detailed information while many other comments involve accounting related issues. Conclusion Many OTC-BB quoted companies misunderstood the nature of the 10sb or underestimated how thorough the SEC would be in their review. Many investors and perhaps the companies themselves may have thought that if a company completed a F10 or 10sb they would automatically become fully reporting. It turned out that becoming fully reporting meant not only submitting a 10SB but submitting one that was acceptable to the SEC. Eventually most companies who are proceeding with their filing should return to the OTC-BB. The cost considerations are primarily accounting and legal related. Most of the costs are usually incurred in the initial filing. So most companies that have incurred the costs and time associated with initial filing will find it prudent to continue submitting Amended 10sb's until they have clarified all the SEC comments and get relisted.