This entry is part 10 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


Effect of the Revised Rule on the OTCBB Markets

When the revised 51-509 rule change takes place on September 15, 2008 a domino effect will begin. SEC attorneys will start rejecting any shell that has ties to Canada. Shell owners who control those shells will either have to take a major haircut on the price of the shell or wait the minimum of one year until the legend can be removed from the stock certificates. The effect on the OTCBB marketplace will be three fold:

  1. Canadian shell prices will be sharply reduced until all shells with Canadian shareholders are sold.

  2. Canadian promoters will no longer be able to produce manufactured shells (100% deliver shells) so inventory will start to diminish

  3. With the reduction of inventory pricing of US based OTCBB shells will slowly start rising in the third quarter of 2008 and contine through 2009.

Series Navigation«BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 9BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 11»

Bookmark to:
Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to Del.icio.us Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to digg Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to FURL Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to blinklist Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to My-Tuts Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to reddit Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to Feed Me Links! Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to Technorati Add 'BCSC revises 51-509 Rule for U.S. OTC Issuers – Part 10' to Socializer