Resource World Magazine

j u n e / j u l y 2 0 1 4 www.resourceworld.com 5 e d i t o r ' s c o m m e n t s E l l s w o r t h D i c k s o n Ellsworth Dickson, Editor-in-Chief email: editor@resourceworld.com t: 604 484 3800 | 1 877 484 3800 A number of our American readers requested that we make sure to include the OTC ticker symbols for Canadian junior mining companies that are dually-listed in Canada and on the OTCQX, OTCQB and OTC Pink market- places in the United States. Some American readers find it difficult to trade these Canadian listed junior stocks in the US. To follow up I was fortunate to be able to interview R. Cromwell Coulson, President and CEO of OTC Markets Group, which operates the three marketplaces. The New York-based OTC Markets Group is not strictly a stock exchange, rather it operates an SEC registered and FINRA-regulated alternative trading sys- tem that provides an electronic platform for bringing together purchasers and sell- ers of securities and performs many of the functions commonly provided by a stock exchange. Perhaps larger than you may imagine, the OTCQX, OTCQB and OTC Pink mar- ketplaces have approximately 10,000 US and global securities, more than 3,100 American Depository Receipts (ADRs) and foreign ordinary shares (including Canadian shares), over 1,500 dividend- paying stocks, over 2,500 SEC-reporting companies, over 1,400 large and mid- cap companies and over 2,000 small and growth companies. Coulson told Resource World, "We have divided our markets into three tiers: the OTCQX, the OTCQB and the OTC Pink. The OTCQX is our best marketplace and has the highest financial standards. You can't qualify if you are a penny stock. You need to be sponsored by either an investment bank or a US law firm. It's a very efficient marketplace for established growth companies such as the TSX main market and the top tier of TSX Venture Exchange companies." "The lower three quarters of developing stage companies, for example, on the TSX Venture Exchange, would be suitable for listing on our OTCQB marketplace," said Coulson. "The OTC Pink is an open mar- ketplace and is designed so broker-dealers can electronically trade penny stocks and shells as well as distressed companies." There are several advantages to having a dual listing, for example, on the TSX Venture Exchange and the OTCQX and OTCQB marketplaces. "When Canadian, or other foreign companies, dually-list on our OTCQX marketplace, US investors can easily trade shares with a US trading symbol in US dollars," explained Coulson. "American investors are uncomfortable trading in for- eign stocks in foreign currency that comes with a currency charge and exchange fees." He also pointed out that with what is called 'blue sky' compliance in the US, a broker-dealer can give advice and solicit trades to foreign investors. These blue sky regulations help brokers facilitate trades and provide investors with more transpar- ency and security. Trading on OTCQX also helps to increase trading volume and company exposure to investors. "Our listing fees are competitive. It's about $15,000 a year to maintain a listing on the OTCQX. We have a straightforward listing process. If you are a Canadian com- pany and listed on the TSX or TSX Venture Exchange, you have already gone through some of the best regulatory standards, so we have reduced the complexity of listing on our marketplaces." "We strive to provide investors with the same trading experience as on other exchanges," noted Coulson. He said that both listings and trading volumes are growing. In particular, there have been a number of bio-tech companies that have recently listed. "The first quarter of this year was the most active trading by dollar volume in our history," said Coulson. n OTC Markets good for investors and foreign companies

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