Dig Media Solutions

By Mike Rodger, VP Marketing, Dig Media Inc.

The BC Securities Commission is considering requiring OTC companies to comply with disclosure laws.  The BCSC says

…the BCSC will have better legal tools to improve disclosure of B.C.-connected OTC issuers. The proposed rule also discourages the manufacture and sale of shell companies that may be used for abusive purposes.

This is not an issue for OTC issuing companies looking to advertise with Dig Media or other advertisers based in BC.  It is only for OTC issuers that are based in BC or that have investor relations done in BC or owned by people in BC. Details follow.

This is an issue for OTC companies only if:
(a) its business is directed or administered in or from British Columbia,
(b) investor relations activities, by or on behalf of it, are carried on in or from British Columbia, or
(c) the OTC issuer’s ticker-symbol date is on or after September 15, 2008, and, on or before the ticker-symbol date, the issuer distributed a security to a person resident in British Columbia and that security is of the class of securities that became the issuer’s OTC-quoted securities.

Full details available here.

What is Investor Relations?

Advertising is not Investor Relations.  BC’s securities legislation is very specific on this front.  From the act:

“investor relations activities” means any activities or oral or written communications, by or on behalf of an issuer or security holder of the issuer, that promote or reasonably could be expected to promote the purchase or sale of securities of the issuer, but does not include
(c) communications by a publisher of, or writer for, a newspaper, news magazine or business or financial publication, that is of general and regular paid circulation, distributed only to subscribers to it for value or to purchasers of it, if
(i) the communication is only through the newspaper, magazine or publication, and
(ii) the publisher or writer receives no commission or other consideration other than for acting in the capacity of publisher or writer