Pink Sheets to Offer Two-Tier Listing Service
Pink Sheets, which operates a market for over-the-counter stocks, plans to introduce a two- tiered listing service to lure foreign and bigger U.S. companies who want to avoid the costs of listing on an exchange and complying with Sarbanes-Oxley regulations.
Companies that list on PremierQX must have annual meetings and a minimum stock price of $1, whereas PrimeQX will list smaller companies. The two-tiered listing service will start in April, with all stocks to require the review of either a securities lawyer or a broker-dealer.
“There is a need for a better place for companies with a market value under $250 million and for international companies who don’t want to get entangled in Sarbanes-Oxley,” said Cromwell Coulson, chairman and chief executive at Pink Sheets in New York.
The move comes a month after Nasdaq Stock Market Inc. announced plans for its own new tiers to compete with the New York Stock Exchange.
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