Many companies have a stereotype of the OTC market as "low-end, with poor liquidity, and difficult to transfer to the main board." However, in reality, there are quite a few Chinese companies that have successfully transferred from OTC to Nasdaq or NYSE main board through standardized operations, performance growth, and professional management. "Starting from OTC → step-by-step upgrade" has become a very mature and stable listing path.
Case 1: YueShang Group (NASDAQ:WETG) – Achieving the leap from OTC to NASDAQ in 2 years
- Development path: Established in March 2019 → Listed on OTCQB in July 2020 → Officially transferred to Nasdaq Capital Market in July 2022
- Market performance: When it transferred to the main board, it publicly issued 10 million ordinary shares at $4 per share. The closing price on the first day of listing exceeded $20, and the market value on the first day exceeded $3.7 billion. The highest stock price in history reached $50.5, and the peak total market value was $10 billion.
- Key takeaway: Companies that first complete standardized operations and performance verification on the OTC market and gain initial recognition from the capital market can reduce listing risks and obtain better market pricing when transferring to the main board.
Case 2: Yingxi Group (NASDAQ:ATXG) – Six years of deep cultivation in the OTC market, market value soared after transferring to the main board.
- Development path: Established in October 2014 → Listed on OTCQB through a reverse merger in 2016 → Successfully transferred to the Nasdaq Capital Market in August 2022
- Market performance: When it transferred to the main board, it publicly issued 5 million ordinary shares at $5 per share. Its historical high share price reached $656 and its peak total market value reached $20 billion, making it a benchmark case for OTC companies transferring to the main board.
- Key takeaway: The OTC market is not only a transitional market, but also a place for companies to refine their business models and build a reputation for capital. Long-term standardized operation can lay a solid foundation for market value performance after the company transfers to the main board.
Case Study 3: Ta Kung Pao Cultural Exchange (TKAT) – An Industry Breakthrough from OTCBB to the NYSE
- Development path: In November 2014, it acquired the OTCBB shell company, renamed it Takung Art and listed it → In March 2017, it successfully transferred to the New York Stock Exchange, becoming the world's first electronic art trading platform to be listed on the NYSE.
- Market performance: The stock price was about $7.74 in the month of the transfer and rose to a high of $74 in July 2021. During this period, a private placement was completed, which fully verified the feasibility of the OTC transfer to the NYSE.
The core prerequisite for OTC's successful transfer to the main board
- 1. Compliance is fundamental: financial compliance, transparent information disclosure, and compliant governance structure meet the compliance requirements for listing on the main board;
- 2. Business growth is the core: Possessing the ability to achieve sustained performance growth and a clear business logic, gaining recognition from the capital market;
- 3. Professional guidance is essential: Guidance from professional institutions familiar with SEC review rules and the transfer process can significantly improve the efficiency and success rate of the transfer.
Golden Box Group has extensive practical experience in OTC listing and main board transfer, and has led the entire process from shell resource acquisition, asset injection, compliance rectification to transfer application. It has helped many companies achieve a step-by-step upgrade from OTC to Nasdaq and NYSE.