What is OTC Uplisting?
Process of moving a company’s shares from the OTC market to a major exchange like NASDAQ or NYSE. This move offers advantages like increased visibility, more trading activity, better access to capital, and exposure to a larger investor base.
The OTC markets Group platform is segregated into 3 major market tiers, from high to low: OTCQX, OTCQB, and OTCPink.
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NYSE |
Nasdaq |
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Delist (Decrease) |
Uplist (Increase) |
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OTC Markets |
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OTCQX |
OTC International Premier OTC International |
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OTCQB |
OTCQB |
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OTCPink |
Pink Current Information Pink Limited Information |
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OTC markets
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Advantages to a Company: |
Advantages to an Investor: |
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The OTC Uplisting Process
1. Evaluation and Preparation
– Assess your company’s financial health and readiness for uplisting.
– Meet the listing requirements of the target exchange.
– Seek guidance from advisors.
2. Fulfilling Listing Requirements
– Ensure compliance with share price and financial reporting obligations.
– Implement strategies like stock splits if needed.
3. Application and Review
– Apply and required documents to the target exchange.
– Undergo a thorough review process.
4. Listing and Market Transition
– Upon approval, your company’s shares will be listed and trading will begin.
– Communicate the uplisting to shareholders and investors.
– Comply with ongoing reporting requirements and corporate governance standards.
Timing, Fees, and Requirements
– Timeframe: The uplisting process takes 7 months to a year or more.
Example:
Stage (I) – Year 1 Pink upgrade to OTCQB/ OTCQX
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1 month |
Acquisition of a US Over-the-Counter (OTC) Company (Pink) and proceeding with the legal due diligence. |
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2 months |
Commencing the audit for the project company and preparing the pitch deck/ business proposal for the project. |
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1 month |
The OTC company issues new shares to acquire the project company upon completion of the audit |
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2 months |
Applications for changing the OTC symbol and name. |
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1 month |
Application for OTCQB/OTCQX (if required) with a public float of 10% and shares maintained at USD 0.1 or above. |
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Stage (II) – Year 2 Uplisting to Nasdaq
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Completion of a full-year audit |
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2 -3 months |
Preparation for S-1 |
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Submission of application for uplisting to Nasdaq. |
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6 – 8 months |
Approval of the uplisting. |
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– Application Fee: Major exchanges charge an application fee, which varies based on the size of your company.
– Listing Requirements: Each exchange has specific requirements, including share price, market capitalization, and financial performance.
– Ongoing Compliance: After uplisting, your company must comply with reporting and governance standards set by the exchange.
