Frequently Asked Questions

OTC Markets is the world's largest electronic marketplace for over-the-counter securities. Unlike major exchanges like NASDAQ or NYSE, OTC Markets operates as a quotation system with three tiers: OTCQX (highest quality), OTCQB (venture stage), and Pink Market (speculative). OTC Markets provides a more accessible pathway for smaller companies to access public capital markets with lower listing requirements and costs compared to traditional exchanges.

OTC Markets has different requirements for each tier:

• OTCQX: Requires audited financial statements, minimum bid price of $0.01, and ongoing disclosure obligations
• OTCQB: Requires current reporting with SEC or OTC Markets, minimum bid price of $0.01, and annual certification
• Pink Market: Basic disclosure requirements with varying levels of information availability

The OTC listing process typically takes 3-6 months, depending on the company's readiness and compliance with requirements. Our streamlined process includes:

• Initial assessment and preparation (2-4 weeks)
• Document preparation and filing (4-6 weeks)
• Review and approval process (4-8 weeks)
• Final listing and trading commencement (1-2 weeks)

OTC Markets listing costs are significantly lower than major exchanges:

• OTCQX: $15,000-$20,000 annual fee
• OTCQB: $12,000-$15,000 annual fee
• Pink Market: $2,000-$5,000 annual fee
• Professional advisory fees: $20,000-$50,000 (our competitive pricing)

A Special Purpose Acquisition Company (SPAC) is a "blank check" company created to raise capital through an IPO with the sole purpose of acquiring or merging with an existing company. SPACs provide an alternative path to public markets, typically offering faster execution (3-4 months vs 9-12 months for traditional IPO) and more predictable pricing.

SPAC transactions offer several advantages:

• Speed: 3-4 months vs 9-12 months for traditional IPO
• Certainty: Pre-negotiated valuation and terms
• Cost Efficiency: Lower advisory fees ($50,000-$200,000 vs $500,000+ for traditional IPO)
• Flexibility: Ability to include forward-looking projections
• Access to Capital: Immediate access to public market funding

Key requirements include:

• Financial Readiness: Audited financial statements and proper accounting systems
• Compliance Framework: SEC, FINRA, and OTC Markets regulatory compliance
• Management Team: Experienced leadership capable of public company management
• Business Model: Clear value proposition and growth strategy
• Due Diligence: Comprehensive legal, financial, and operational review

Our success is built on:

• Proven Process: Streamlined SOP reducing execution time by 50%
• Expert Team: Former SEC, FINRA, and OTC Markets professionals
• Digital Platform: Automated compliance and document management
• Risk Management: Comprehensive due diligence and risk assessment
• Post-Transaction Support: Ongoing compliance and investor relations

Our management team consists of ten core members with diverse professional backgrounds:

• Strategic Leadership: Lisa Gong, Victor Deng, and Victor Zhang bring extensive experience in strategic leadership, cross-border M&A, and market cap management
• Legal & Compliance: Hui Chen, Cassi Olson, Celine Chen, and Natella Vinnikov provide expertise in SEC, FINRA, and OTC Markets regulatory compliance
• Audit & Finance: Huang Mei brings "Big Four" accounting firm experience, ensuring transparent and compliant financial reporting
• Cross-border Operations: Chen Ji and Hao Chen provide international operations experience and China market resources

We maintain a three-tier board structure for optimal governance:

• Executive Directors: CEO and core management directly involved in strategy and execution
• Independent Directors: Over 1/3 independent directors from investment banking, law firms, accounting firms, and industry associations
• Advisory Committee: External experts providing non-executive strategic support
• Specialized Committees: Audit Committee, Compensation & Incentive Committee, and Compliance & Risk Management Committee

Our financial strategy focuses on sustainable growth through diversified revenue streams:

• Revenue Sources: Advisory fees, SaaS subscription revenue, and success fees
• Growth Targets: Conservative scenario: $30-40M annually; Base scenario: $70-90M annually; Optimistic scenario: $130-150M annually
• Market Expansion: North America (core), Asia (focus), Europe (extension) global strategy
• Technology Investment: 40% of funding allocated to digital platform development and AI integration

We maintain comprehensive risk management across seven key areas:

• Strategic Risk: Business diversification and cross-border market expansion
• Market Risk: Differentiated positioning and extended service chains
• Technology Risk: End-to-end encryption, blockchain notarization, and zero-trust architecture
• Financial Risk: Diversified revenue models and staged financing
• Compliance Risk: Chief Compliance Officer system and AI risk prediction
• Management Risk: Equity incentives and cross-disciplinary team development
• Macro Risk: Multi-market layout and counter-cyclical strategies

Our funding strategy supports long-term growth and market expansion:

• Funding Target: $30-50M over 18-24 months
• Use of Funds: 40% R&D, 30% market expansion, 20% compliance, 10% working capital
• Capital Structure: Maintain founder control above 50% while providing attractive returns to investors
• Exit Strategy: Multiple exit paths including M&A, secondary market, and buyback options
• Investor Returns: Conservative: 0.5-0.6x; Base: 1.3x; Optimistic: 2-3x over 3 years

Our company culture is built on three core values:

• Transparency: All major decisions are open and transparent, both internally and with clients/investors
• Responsibility: Every team member takes ownership of their work results, with shared accountability for project outcomes
• Speed: Capital markets change rapidly, so we maintain SOPs and digital tools to complete SPAC IPOs in 3-4 months
• ESG Integration: Environmental, social, and governance principles are embedded in our business model and operations
• Long-term Focus: We prioritize sustainable growth over short-term gains

We operate on a diversified three-tier revenue model:

• Advisory Fees: SPAC projects ($50-200M), OTC projects ($20-50M) - provides stable cash flow
• Subscription Revenue: Digital compliance SaaS platform and IR platform - creates long-term client retention
• Success Fees: SPAC merger success fees (1-3% of transaction size), PIPE/Pre-IPO financing (2-4%) - provides high-growth potential
• Pricing Strategy: Tiered pricing based on project complexity and client size
• Long-term Binding: Post-IPO compliance and IR services maintain ongoing client relationships

Our competitive advantages include:

• Dual-Track Integration: Unique combination of SPAC and OTC services in one platform
• Cross-border Expertise: Deep understanding of US, Asian, and European regulatory requirements
• Digital Platform: Proprietary SaaS platform for compliance automation and investor relations
• Proven Track Record: QSEA ($82.8M), QUMSU ($82.8M), PELI ($69M) successful SPAC projects
• Execution Speed: 3-4 months for SPAC IPOs vs industry average 6-9 months
• Compliance Excellence: Proactive compliance approach reduces SEC inquiry cycles
• Cost Efficiency: 1/3-1/5 of traditional investment bank fees

We serve three primary client segments:

• Small and Medium Enterprises: Companies seeking OTC listing or SPAC acquisition, typically $3-10B market cap
• Cross-border Companies: Asian and European companies wanting to enter US capital markets
• Institutional Investors: Pension funds, sovereign funds, family offices seeking transparent investment opportunities
• Target Industries: Renewable energy, AI, digital healthcare, cross-border e-commerce, green energy
• Geographic Focus: North America (core), Asia (focus), Europe (extension)

Our growth strategy includes several key milestones:

• Technology Development: 99.99% platform availability, AI-powered risk prediction, blockchain notarization
• Market Expansion: Hong Kong, Singapore, London, Frankfurt R&D centers by 2026
• Client Growth: 200+ clients across North America, Asia, Europe by 2028
• Platform Users: 2000+ platform subscribers by 2030
• Revenue Targets: $70-90M (base scenario) to $130-150M (optimistic scenario) annually
• IPO Preparation: Nasdaq or HKEX listing as capital markets digitalization leader
• ESG Leadership: 2030 carbon neutral office, comprehensive ESG service offerings

We have successfully completed three major SPAC projects in 2025:

• QSEA (Quartzsea Acquisition Corporation): Raised $82.8M in 3 months with 1/5 rights structure, focusing on renewable energy and digital healthcare
• QUMSU (Quantumsphere Acquisition Corporation): Raised $82.8M with innovative 1/7 rights structure, targeting AI and cross-border tech services
• PELI (Pelican Acquisition Corporation): Raised $69M with conservative 1/10 rights structure, specializing in cross-border mergers and emerging industries
• Common Success Factors: Proactive compliance, efficient execution, transparent disclosure, and strong investor confidence

Our OTC listing success methodology includes:

• Pre-emptive Compliance: Identify potential SEC issues before submission, reducing inquiry cycles
• Cross-disciplinary Teams: Legal, audit, and market experts working in unified SOPs
• Pragmatic Roadshow Strategy: Focus on realistic growth potential rather than over-promising
• Experienced Underwriters: Partner with established investment banks with strong investor networks
• Post-IPO Support: Continued compliance and investor relations management
• Transparent Communication: Regular updates and clear risk disclosure to maintain investor trust

Our client testimonials showcase our innovative approach and successful outcomes:

• QSEA Client: "Exceptional service with 1/5 rights structure that balanced our needs perfectly"
• QUMSU Client: "Innovative 1/7 rights structure reduced dilution risk while attracting top institutional investors"
• PELI Client: "Conservative 1/10 rights design minimized dilution and appealed to our long-term investor base"
• Market Recognition: Flexible structures adapted to market conditions and investor preferences
• Risk Management: Each structure designed to balance sponsor incentives with investor protection

Our performance metrics demonstrate our track record of success:

• Total Capital Raised: Over $234.6M across three major SPAC projects
• Average Timeline: 3 months from filing to completion (industry average: 6-9 months)
• Success Rate: 100% completion rate for all SPAC projects
• Client Satisfaction: 100% client retention and referral rate
• Regulatory Compliance: Zero SEC enforcement actions or compliance issues

Our leadership team consists of eleven core members with diverse expertise:

• Lisa Gong (CEO): Strategic leadership with 10+ years cross-border capital markets experience
• Hui Chen (President): Legal partner with extensive SEC compliance and cross-border legal expertise
• Cassi Olson (VP): SEC compliance specialist with IPO operation experience
• Victor Deng (Partner): Cross-border M&A expert with 30+ successful capital market projects
• Celine Chen (Partner): SPAC IPO and merger transaction specialist
• Natella Vinnikov (Partner): 30+ years contract law and cross-border compliance experience
• Huang Mei (CFO): Former Big Four auditor with IPO and cross-border tax expertise
• Chen Ji (COO): International operations expert with global infrastructure experience
• Victor Zhang (Market Cap Manager): FRM-certified expert in post-IPO market management
• Hao Chen (China President): Veteran securities professional with decades of China market experience

Our team's effectiveness comes from several key factors:

• Cross-disciplinary Expertise: Strategic, legal, compliance, audit, finance, and cross-border operations
• Complementary Skills: Each member brings unique strengths that create comprehensive coverage
• Proven Track Record: Combined experience of 100+ successful capital market projects
• Cultural Diversity: Team members from 8 countries/regions with 40% female management
• Shared Values: Transparency, responsibility, and speed as core operating principles
• Long-term Commitment: Equity incentives and cultural rewards ensure team stability
• Continuous Learning: Support for CFA, CPA, FRM certifications and professional development

Our cross-border capabilities are built on:

• Dual Regulatory Expertise: Deep understanding of SEC, CSRC, and European regulatory frameworks
• Cultural Bridge Building: Team members who can communicate effectively across cultures
• Local Market Knowledge: Regional expertise in North America, Asia, and Europe
• Language Capabilities: Multilingual support for Chinese, English, Japanese, and German markets
• Trust Building: Emphasis on transparency and long-term relationship development
• Risk Mitigation: Proactive identification and resolution of cross-border compliance conflicts

Our management team is available during the following hours:

• Regular Business Hours: Monday - Friday: 9:00 AM - 6:00 PM EST
• Saturday: 10:00 AM - 4:00 PM EST
• Sunday: Closed
• Emergency Contact: +1 (917) 975-1888 (24/7 for urgent matters)
• Consultation Appointments: Monday - Friday, 9:00 AM - 5:00 PM EST
• Market Hours Support: Extended coverage 8:00 AM - 7:00 PM EST during trading days

Key SEC requirements include:

• Registration Statements: S-1, S-4, and other required filings
• Periodic Reporting: 10-K, 10-Q, 8-K, and proxy statements
• Disclosure Controls: Internal controls over financial reporting
• Insider Trading: Section 16 reporting and Rule 144 compliance
• Corporate Governance: Board composition and committee requirements

Our FINRA compliance framework includes:

• Rule 15c2-11: Information review and verification requirements
• Due Diligence: Comprehensive issuer and security analysis
• Documentation: Proper record-keeping and reporting
• Training: Ongoing staff education on regulatory changes
• Monitoring: Continuous compliance monitoring and reporting

Audit requirements include:

• PCAOB Registration: Auditors must be registered with PCAOB
• Audited Financials: Annual audited financial statements
• Internal Controls: Assessment of internal control over financial reporting
• Independence: Auditor independence requirements
• Quality Control: Firm-wide quality control systems

Our ongoing compliance program includes:

• Digital Platform: Automated compliance monitoring and reporting
• Regular Reviews: Quarterly compliance assessments
• Training Programs: Continuous education on regulatory changes
• Document Management: Centralized filing and tracking system
• Expert Support: Access to legal and compliance professionals

Our regular business hours are:

• Monday - Friday: 9:00 AM - 6:00 PM EST
• Saturday: 10:00 AM - 4:00 PM EST
• Sunday: Closed

Yes, we provide 24/7 emergency support for urgent matters:

• Emergency Line: +1 (917) 975-1888
• Available: 24/7 for critical issues
• Response Time: Within 2 hours for urgent matters

Client consultations are available by appointment:

• Schedule: Monday - Friday
• Time Slots: 9:00 AM - 5:00 PM EST
• Booking: Contact us to schedule in advance
• Format: In-person, video call, or phone consultation

Yes, we offer extended support during market trading hours:

• Market Days: Monday - Friday
• Extended Hours: 8:00 AM - 7:00 PM EST
• Coverage: Full support during market trading hours
• Priority: Market-related inquiries get priority response

Key SPAC terms include:

• SPAC: Special Purpose Acquisition Company - a "blank check" company that raises capital through an IPO to acquire or merge with an existing company
• De-SPAC: The process of a SPAC merging with a target company, resulting in the target company becoming publicly traded
• PIPE: Private Investment in Public Equity - private investment in public companies, often used in SPAC transactions
• Trust Account: An escrow account where SPAC IPO proceeds are held until a merger or acquisition is completed

Main OTC Market terms include:

• OTCQX: The highest tier of the OTC Markets, requiring the most stringent reporting and compliance standards
• OTCQB: The middle tier of the OTC Markets, requiring current financial reporting and other basic standards
• Pink Sheets: The lowest tier of the OTC Markets with minimal reporting requirements
• Market Maker: A firm that provides liquidity by buying and selling securities on behalf of clients

Important compliance terms include:

• SEC: Securities and Exchange Commission - the federal agency responsible for regulating securities markets
• FINRA: Financial Industry Regulatory Authority - a self-regulatory organization that oversees broker-dealers
• Form 211: A form required for market makers to quote securities on the OTC Markets
• Rule 144: SEC rule governing the sale of restricted and control securities