WASHINGTON, June 27, 2003 (PRIMEZONE) -- The CEO Council, a Washington D.C.-based organization of small public company executives and directors, issued comments on today's announcement by Nasdaq (OTCBB:NDAQ) on its termination of the planned BBX exchange.
Since September of 2002, The CEO Council (http://www.ceocouncil.net) has led a grass roots campaign to convince the U.S. Securities and Exchange Commission that it should not approve Nasdaq's application for a new BBX Exchange as long as that approval would end the over-the-counter bulletin board system better known as the OTCBB, and adversely impact compliance requirements for some 2,000 public companies. Last September, delegates to the SEC's annual Small Business Forum in Washington, D.C. virtually unanimously stated that "the SEC should prohibit the Nasdaq Stock Market from terminating the OTCBB until such time as ... Nasdaq ... can determine a suitable alternative to the OTCBB that would not be harmful to small business capital formation."
"Yesterday's decision by Nasdaq gives us hope that the regulatory environment can return to one that recognizes the needs of small issuers," said Steven Crane, CEO Council board member/Political Action Committee Chair, and CEO of CorpHQ Inc. (Pink Sheets:COHQ), a small public company.
"We believe this is a momentous day for public companies and their shareholders. This decision means that at least 2,000 companies and their investors will not face the loss of 80% of their market capitalization, which history tells us was inevitable with a de-listing to the Pink Sheets," said Crane.
Crane addressed the nation's Small Public Company Investors:
"The CEO Council strongly supports Nasdaq's intent to bring better disclosure, greater market transparency and improved trading practices to the micro-capitalization stock markets. However, we could not imagine why they would only introduce those standards in the form of the BBX, at the expense of the investors in at least 2,000 companies listed on the OTCBB. Why aren't these benefits available to investors in OTCBB companies? We urge you to contact the CEOs and CFOs of the companies in which you have invested and urge them to join The CEO Council. Make sure your voice is heard."
Crane addressed Nasdaq:
"Now is not the time to rest on your laurels, Nasdaq. Build on your momentum by enacting reforms in the many areas of concern that small public companies have voiced for years. Publish short positions on OTCBB stocks for starters. Make the 15c2-11 process less onerous on new issuers. Make the OTCBB more transparent. Work with us rather than against us."
Crane then addressed the SEC:
"We would like to give our heartfelt thanks to the Commissioners and Staff at the SEC for actually listening to and acting upon the recommendations brought forth by The CEO Council and other small public company advocates at last year's SEC Small Business Forum. This is a great start, but there is so much more that can be done. Allow non-reporting public companies to publicly disclose financial and material information voluntarily in a less costly format. License professional non-NASD member capital "finders" to help us gain access to non-traditional sources of funding. Align the needs of investors and small issuers and lessen the regulatory burden associated with locating capital. Small business is this country's life's blood and while we'd like to again reiterate our thanks for your rapid response to this issue, we still need your help "
Crane finally addressed small public issuers:
"Today's decision proves that you can fight City Hall and that the little guy can win against overwhelming odds. But nothing can be won without considerable effort. In this battle to save your market capitalization, a handful of overworked small public company CEOs and capital market practitioners banded together and gave of themselves in both precious time and money to save your investors billions of dollars.
"Now is the time for you to step up to the plate and commit your time and resources to make sure this isn't a Pyrrhic victory. I urge all OTCBB and Pink Sheet companies to join The CEO Council and to contribute to the future of small public issuers in the United States. I also call on all capital markets service providers to become involved in this effort by joining The CEO Council as Associate Members.
"The American public needs you to join in the fight to keep the capital markets available to small public issuers. Join The CEO Council and make sure your voice is heard."
About The CEO Council:
The mission of The CEO Council is to provide a common voice and platform for officers and directors of public companies, and enable them to more effectively interpret and participate in the corporate governance and regulatory process to ensure compliance, to safeguard shareholder value and to clearly demonstrate a dedication to fair and ethical business practices.