Pink Sheet

There are no specific requirements to list on the Pink Sheets. Listing candidates can be development stage or established companies. There is also no requirement for periodic filings with the US Securities and Exchange Commission (SEC).

Trading on the Pink Sheets is the most simple and inexpensive method of going public. There is a moderate upfront cost to register and virtually no ongoing maintenance cost once public.

Because of the low barrier of entry as well as little to no transparency, Pink Sheets are often viewed with less credibility and value. Because of that, raising capital for Pink Sheet companies could be more challenging than would for a Bulletin Board.

For development stage companies, companies with moderate income or companies that do not want to incur the maintenance costs or having to file periodic reports, Pink Sheet is a good option. Trading on the Pink Sheet may also be a good starting point in a gradual plan to move up to the Bulletin Board.

Bulletin Board

There are no specific requirements to list on the Bulletin Board other than audited financials. Listing candidates can be development stage or established companies. Companies listing on the Bulletin Board must comply with the SEC’s regulations and the file period reports.

Going public on the Bulletin Board is a little more expensive than a Pink Sheet but still much less expensive compared to a major exchange. Depending on the method of going public, there is an upfront cost of either a reverse merger or direct registration. Once public, there are ongoing maintenance costs associated to the periodic filings with the SEC which include quarterly financials reviews and annual audits by an auditor as well as any necessary legal services for compliance issues.

Going public as a Bulletin Board company is a good option for companies that have proven operating histories, good revenues and income, or good growth potential if adequately capitalized. The company’s cash flow must be sufficient or its business model strong enough to raise the capital required for operating expenses and ongoing maintenance.