This entry is part 4 of 12 in the series BCSC revises 51-509 Rule for U.S. OTC issuers
BCSC revises 51-509 Rule for U.S. OTC issuers

So what does this revised BCSC rule 51-509 change mean to Buyers and Sellers of OTCBB shells? The short answer to that question is - PLENTY!

Buyers will now have to make sure that they do not purchase a shell that has Canadian shareholders. The BCSC has, in effect, deemed that all securities issued to Canadian shareholders in US OTC issuers will have a restricted legend even if those securities were registered in an SEC registration statement to become freely tradable. The rule also includes companies that are incorporated in the US.

Canadian shells will disappear from the landscape. With the passing of this new rule all shells originating out of Canada or that have Canadian shareholders will be suspect. Once the news is disseminated to law community the SEC attorneys will err on the side of safety and reject any shells that have a taint of a Canadian connection.

Series Navigation«BCSC revises 51-509 Rule for U.S. OTC issuers – Part 3BCSC revises 51-509 Rule for U.S. OTC issuers – Part 5»

Bookmark to:
Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to Del.icio.us Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to digg Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to FURL Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to blinklist Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to My-Tuts Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to reddit Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to Feed Me Links! Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to Technorati Add 'BCSC revises 51-509 Rule for U.S. OTC issuers – Part 4' to Socializer