OTCQB listing.
The OTC “venture” market for early-stage and developing companies. A very common first public quote after a reverse merger or Form 10 registration — current reporting, a US$0.01 minimum bid, then an uplist as the company grows.
OTCQB is the venture tier of the OTC Markets operated by OTC Markets Group. It sits below OTCQX and is built for early-stage and developing companies. It is a quotation market rather than a national securities exchange, and it is often the first place a company trades after a reverse takeover or a Form 10 registration.
- OTCQB is the OTC Markets venture tier for early-stage and developing companies — a quotation market, not an exchange.
- Requirements include being current in reporting, a US$0.01 minimum bid price, and an annual verification and management certification.
- Companies with no operations — non-operating shells — and companies in bankruptcy are not eligible.
- It is a very common first quote after a reverse merger or Form 10, after which a company can uplist to OTCQX, Nasdaq or NYSE American.
The venture tier
The OTC Markets are organised into tiers by the quality and disclosure of the companies on them. OTCQX is the top tier; OTCQB is the venture tier beneath it, intended for entrepreneurial and developing companies that are building toward the standards of a higher market. Like OTCQX, OTCQB is a quotation market on which broker-dealers quote prices — it gives a company a public, tradable security, but it is not a national securities exchange, and it is important to describe it that way to investors.
The nature of the OTCQB requirements
OTCQB is designed to be reachable by developing companies while still keeping out shells with no business and troubled issuers. In general terms, a company on OTCQB is expected to satisfy:
Current reporting
The company must be a reporting company that is current in its disclosure — through SEC reporting or an alternative reporting standard recognised by OTC Markets.
US$0.01 minimum bid
The security must meet a US$0.01 minimum bid price, a low floor suited to early-stage companies but one that still excludes sub-penny quotes.
Annual verification
An annual verification and management certification of the company's profile and share information, so that the public record stays current.
No non-operating shells
Companies with no operations, and companies in bankruptcy, are not eligible — OTCQB is for businesses that actually operate, not dormant shells.
The exact criteria are set by OTC Markets Group and change over time, so eligibility is confirmed with US securities counsel at the time of application rather than assumed in advance.
Considering OTCQB as a first quote?
Start an enquiry →A common first step after a reverse merger
OTCQB is frequently the first market a company trades on after going public. Because its thresholds are lower than an exchange's, a developing company that has completed a reverse merger — or self-registered as a reporting company via Form 10 — can obtain a public, tradable security on OTCQB relatively quickly. From there the pattern is familiar: the company builds a reporting history, broadens its float, develops a trading record, and then uplists.
Reverse merger or Form 10
The company becomes a reporting public company by merging into a shell or by self-registering via Form 10, with audited financials and SEC disclosure prepared by counsel.
First public market
The security is quoted on OTCQB — current reporting, US$0.01 minimum bid, annual verification — giving the company a tradable currency and a public record.
Move up as you grow
Once it qualifies, the company uplists to OTCQX, or straight to Nasdaq or NYSE American.
See how the whole transaction runs on our process page, and how the reverse-merger route compares with a conventional flotation on reverse merger vs IPO.
OTCQB listing — FAQ
Q1What is OTCQB?
OTCQB is the venture tier of the OTC Markets operated by OTC Markets Group, designed for early-stage and developing companies. It is a quotation market, not a national securities exchange. Companies on OTCQB must be current in their reporting, meet a US$0.01 minimum bid price, and undergo an annual verification; companies with no operations are not eligible.
Q2What are the OTCQB requirements?
In general terms, a company on OTCQB must be a reporting company that is current in its disclosure, meet a US$0.01 minimum bid price, complete an annual verification and management certification, and not be a shell with no operations or in bankruptcy. The exact criteria are set by OTC Markets Group and are confirmed at the time of application.
Q3Why is OTCQB a common first step after a reverse merger?
OTCQB is often the first public quote after a reverse merger or a Form 10 registration because its thresholds are lower than an exchange's, so a developing company can obtain a public, tradable security relatively quickly. The company then builds a reporting history, float and trading record, and uplists to OTCQX, Nasdaq or NYSE American once it qualifies.
Q4Is Reverse Takeover a broker-dealer?
No. Reverse Takeover is an advisory and arranger, not a registered broker-dealer, law firm or auditor. Regulated activities are performed by licensed US securities counsel, PCAOB-registered auditors, transfer agents and broker-dealers coordinated on the transaction.
Other listing venues
- NasdaqThe three-tier senior exchange
- NYSE AmericanThe NYSE market for smaller companies
- OTCQXThe top OTC Markets tier
- All listing venuesCompare the venues at a glance
This page is general, educational information about US listing routes and is not investment, legal, tax, or accounting advice, nor an offer or solicitation. Regulatory details change and vary by circumstance; obtain advice from qualified US securities counsel. See our disclosures.