Foreign Companies

Lately, we are getting many inquiries about dual listing or to list foreign companies either through IPO or RTO on OTCmarket.

What are the benefits for foreign companies to be listed on OTC markets and how they can do that?  Is it an easy procedure, and what are the conditions? What is the main reason for companies that are listed on qualified foreign exchanges to trade on OTC markets?

We are here to cater to your questions by providing you with the right answers.

The first thing we need to start with is that this market is a global market. Only that fact gives you countless opportunities.

To be listed on Wall Street which represents a vital center of global finance, for early-stage growth companies, and having access to US investors can bring a significant competitive advantage. It is appropriate for small businesses due to its regulatory structure, which gives better transparency and accessibility to a bigger pool of less risk-averse and more active investors. This is important for start-ups and most tech companies at crucial periods of growth, particularly as a less dilutive option to venture capital investments.

So, the conclusion is that US capital markets provide even tiny businesses with the most global exposure.

When we speak about the procedure, it is quite simple for companies that are already listed on qualified foreign stock markets. To cross-trade on OTC Markets easily can be done by invoking the foreign private issuer exemption 12g3-2b- the SEC exemption. It’s a simple and cost-effective approach to connect with US investors.

So, here is the solution for foreign private issuers to acquire entrance to the world’s biggest stock exchange, US private and institutional investors, without difficulty and costs of an initial public offering improving efficiency and saving a lot of time and money.

First things first, the Act’s exemption is instantly available if the relevant conditions are met. The following are the main conditions to qualify for the exemption:

-The foreign private issuer is already registered on an authorized stock market in a non-US jurisdiction

-The disclosures of the foreign private issuer are available in English online

-The third thing – the Act exempts the foreign private issuer from certain reporting requirements that are met by the great majority of foreign private issuers and indicates that the foreign private issuer has never before listed or publicly sold its securities in the United States exchanges.

It is required for an issuer to maintain a listing of its equity securities in its primary trading market located outside the United States. As a result, the adopted amendments should make it easier for U.S. investors to gain access to a foreign private issuer's material non-United States disclosure documents and thereby make it better. (*reference SEC https://www.sec.gov/rules/final/2008/34-58465.pdf)

So, in reality, OTC markets are the right place for foreign companies looking to raise capital in the United States, usually thru a process of dual-listing. It is a sophisticated trading platform that serves as a doorway to the North American investment world for thousands of organizations from around the globe. Industry giants, dividend-paying corporations, market innovators, and constituted US community banks of over 25 nations are all represented on the premium OTC Market.

All this implies that companies listed on OTC Markets comply with US securities regulations while also improving corporate performances among the broader US investing and broker community. One of the things, why you should be listed on OTC Markets, is that US investors are willing to risk more which might lead to improved valuation and enable international presence. Also may improve liquidity and make funds, financial industry, and analysts pay greater attention. 

In the end, for foreign companies is important to be listed on OTC because of the advantages of increasing US investor holdings as well as increased liquidity and stock value in both the OTC markets and home market too.

Mina Mar Group will help guide you through the whole process of dual-listing. We are here to maintain and improve your company's performance on both stock exchanges. We are also dedicated to strengthening investor relations! Publicly-traded companies face a set of challenges to their growth trajectory, profitability, and corporate reputation. These challenges include branding, operational efficiencies, funding for business expansion, and public perception. Through an integrated set of related services, Mina Mar Group (MMG) helps companies to realize their full potential. MMG will be involved in the implementation and evaluation of selected business strategies with you from A to Z from inception to deal fruition.