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As long as a attorney signs a "Opinion Letter" stating the information is adequate, he meet with David and BOD, done reasonable DD, the OTC Market gives the green check mark. Rely's on the Attorney.
OTCM doesn't do investigations, they can get a 100 complaints, only way they take actions if the the information provided in the complaint is verifiable. Then they have to investigate verifying.
He uses this to keep from having to file SEC reports.
The (300) Shareholder Magic Trick, In their Dec 2023 Annual Report, they claim to have "1 shareholder of record" David uses the "Street Name" loophole.They count the central clearing house (Cede & Co.) as one person, even if 10,000 retail traders own the stock.
The under 300 allowed him to file a Form 15, which lets them "go dark" and stop filing with the SEC. By staying "dark," companies avoid the high-level federal oversight that would have immediately caught a revoked CPA.
If a slip up happens January 1st of each new year, the transfer agent’s ledger shows 301 holders of record, the suspension is automatically terminated. The company must then file a Form 10-K for the previous year and resume 10-Qs immediately.
The system isn't broken; Dalton just knows exactly where the cracks are. But those cracks only work as long as no one points them out.
I honestly applaud him, just very few CEO's have used this or even knows about it
OTCM doesn't do investigations, they can get a 100 complaints, only way they take actions if the the information provided in the complaint is verifiable. Then they have to investigate verifying.
He uses this to keep from having to file SEC reports.
The (300) Shareholder Magic Trick, In their Dec 2023 Annual Report, they claim to have "1 shareholder of record" David uses the "Street Name" loophole.They count the central clearing house (Cede & Co.) as one person, even if 10,000 retail traders own the stock.
The under 300 allowed him to file a Form 15, which lets them "go dark" and stop filing with the SEC. By staying "dark," companies avoid the high-level federal oversight that would have immediately caught a revoked CPA.
If a slip up happens January 1st of each new year, the transfer agent’s ledger shows 301 holders of record, the suspension is automatically terminated. The company must then file a Form 10-K for the previous year and resume 10-Qs immediately.
The system isn't broken; Dalton just knows exactly where the cracks are. But those cracks only work as long as no one points them out.
I honestly applaud him, just very few CEO's have used this or even knows about it
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