2020

ANNUAL MARKET REVIEW 2020 ANNUAL MARKET REVIEW MESSAGE FROM OUR CONTENTS EVP OF CORPORATE SERVICES

While 2020 began with promise for growth, record number of 27 events and over 20,000 MESSAGE FROM OUR EVP OF CORPORATE SERVICES unprecedented challenges required us to attendees in 2020, the breadth of our Virtual 3 shift the way we connect with our colleagues, Investor Conferences reached companies in community of broker-dealers, advisors, and 15 countries. issuers across the U.S. and around the globe. 4 OUR MISSION We adapted new methods of communication Regulatory recognitions for our markets to conduct business remotely with an included expanded Blue Sky Recognition, operational infrastructure to engage more the introduction of our new Blue Sky Data REGULATION & ADVOCACY effectively and help clients achieve their long- product, continued progress on ESOP 6 term strategic goals. Fairness Act legislation and marginability for OTC issuers. Most importantly, recently From our expansion into Europe, to themes approved changes to Rule 15c2-11 by the SEC 10 VISIBILITY echoed during the World Economic Forum formally recognize our disclosure standards in Davos, we gained a broader international and will revolutionize our markets, elevate perspective to embrace rapid shifts in investor experience and allow us to enhance DATA DISTRIBUTION priorities and transition the way we do the onboarding process for thousands of 12 business into the next decade. Amidst companies. travel restrictions and a global business environment that continues to adopt virtual Last year, corporate services provided an 14 GLOBAL JOURNEYS workflows, we continued to harness the unparalleled level of support to the more power of our technology. than 346 securities that joined our premium OTCQX and OTCQB markets. Advancing the OXFORD METRICA STUDY 2020 changed the way companies connect, narrative, OTC Markets Group is positioned 16 but markets remained resilient. Emerging for transformational change in the year ahead sectors such as resources and mining, digital -- at the forefront of delivering contemporary currencies and biotech saw tremendous solutions tailored to meet the needs of our 18 OTC MARKETS GROUP IN THE MEDIA demand—leveraging our OTCQX and clients. OTCQB markets to provide the transparency, disclosure and visibility to capitalize We wish you continued success in the coming THE OTCQX BEST MARKET on trends. Our continued work with year and are grateful for your continued 20 International IR societies and on initiatives support as we fulfill our commitment to with the ASX, TMX, Nasdaq North, Euronext, provide the highest level of service for your Deutsche Börse and the Canadian Securities company and its investors. 22 THE OTCQX BEST 50 Exchange underscore our collaboration with foreign exchanges and ongoing commitment to provide a more efficient path for global 24 THE OTCQB VENTURE MARKET companies to access the U.S. capital markets. Increased demand for our podcasts, video series, remote Market Opens and Virtual 26 OUR OFFICES Investor Conferences demonstrated the strength of our visibility platforms. Real-time, client-focused solutions helped companies CORPORATE SERVICES TEAM navigate a virtual climate, manage investor Jason Paltrowitz 28 outreach and seamlessly connect with EVP, Corporate Services stakeholders across the globe. With a

2 OTC Markets 2020 Annual Market Review *Data as of December 31, 2020 OTC Markets 2020 Annual Market Review 3 OUR MISSION

WE OPERATE WORLD-LEADING SECURITIES MARKETS BY:

Sharing information widely through open networks that foster greater transparency

Connecting broker-dealers, organizing markets and informing To create better investors Delivering elegant, reliable and cost-effective subscription- informed and based solutions more efficient 11,758 financial markets U.S. & International Securities 346 OTCQX and OTCQB Securities Added

$445B Annual Dollar Volume increased 35% from previous year

4 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 5 REGULATION & ADVOCACY

MODERNIZING RULE 15c2-11 “The SEC’s decision to modernize In September 2020, the SEC issued a final disclosure provided by OTCQX and OTCQB rule adopting amendments to Exchange companies, allowing broker-dealers to Act Rule 15c2-11, which governs the public continue to publicly quote the securities on Rule 15c2-11 underscores the quoting of securities traded on the OTCQX, these markets, subject to certain additional OTCQB and Pink markets. requirements such as restrictions applicable data-driven, practical solutions to shell companies. We do not anticipate The modernized Rule 15c2-11 will require material changes to the OTCQX and OTCQB that companies provide current information market standards. OTC Markets Group has developed in order to be publicly quoted by a broker- dealer on our markets. The amended For companies not on the OTCQX and rule also allows brokers to rely on our OTCQB markets, the rule generally prohibits to transform our markets, elevate information review and current information public broker-dealer quoting in “dark” designations to determine whether a companies that do not provide current public the level of disclosure companies company meets the public information information. These securities may be eligible standards under the rule and can be for quoting on an “Expert Market” where quoted. The new Rule 15c2-11 allows us to quote information is not made available to provide and ensure the public play a greater role as a market operator and retail investors. gatekeeper by: market continues to operate 1. Streamlining the path for companies to The compliance date for the new rule is begin trading on our markets; September 26, 2021. As we move closer to implementation, we continue to work 2. Recognizing us as the record keeper for collaboratively with the SEC to ensure an efficiently for all stakeholders.” issuer disclosure; and efficient and smooth transition that prioritizes 3. Enabling broker dealers to rely on our market efficiency and capital formation while R. Cromwell Coulson review of company information. enhancing investor protection. President and CEO, OTC Markets Group The amended rule recognizes OTC Markets Group’s disclosure standards, including the

6 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 7 REGULATION & ADVOCACY VIRTUAL COFFEE BREAK WITH THE SEC MARGIN ELIGIBILITY In July 2020, OTC Markets Group hosted OTC Markets Group continues to advocate a panel discussion with the SEC’s Office of for regulatory change that would designate the Small Business Advocate as part of their certain qualified OTC securities as margin Virtual Coffee Break series. Martha Miller, eligible, including those on the OTCQX the SEC’s Small Business Advocate; Dan market, which would allow shareholders Zinn, OTC Markets Group’s General Counsel; to access additional value by borrowing and executives representing OTCQX-traded against their holdings and would have a companies discussed issues impacting direct impact on the issuer’s ability to raise “In 2020, we continued to work smaller public companies in today’s markets, additional capital. including reporting and disclosure, going public and raising capital. RETIREMENT OF closely with lawmakers and THE OTC BULLETIN BOARD® BLUE SKY PROGRESS On September 24, 2020, FINRA proposed regulators to achieve regulatory Compliance with each states’ “Blue Sky” rule changes seeking to cease operating laws is necessary for broker-dealers to the OTCBB and enhance the regulatory modernizations that increase recommend, solicit or discuss securities obligations related to trading systems such transactions on our markets with U.S. as our OTC Link ATS. OTC Markets Group investors. OTC Markets Group continues submitted comments in October 2020 as transparency and improve market to gain exemptions under state Blue Sky well as in January 2021, expressing our secondary trading laws: our OTCQX market support for the retirement of the OTCBB and is exempt in 37 states and our OTCQB suggesting ways to improve Rule 6439 to efficiency. These initiatives have led market is exempt in 34 states. We have reduce regulatory inefficiencies and enhance worked closely with each of the states on a market integrity. regulators to recognize the role of tailored approach to recognizing our markets via no-action letters, administrative orders, 13F REPORTING REQUIREMENTS legislative actions and formal rule changes. In September 2020, OTC Markets Group our OTCQX and OTCQB markets. submitted comments recommending that ESOP FAIRNESS ACT the SEC expand the scope of securities On February 11, 2020, the ESOP Fairness subject to 13F reporting to include all OTC- Dan Zinn Act (S.3270) (H.R.5851) was introduced traded equities. Share ownership disclosure General Counsel, OTC Markets Group by bi-partisan cosponsors in the House by institutional investment managers is an and Senate. We have long advocated essential component of fair and efficient for modernization of the rules regarding markets, as it allows public companies and employee ownership plans (“ESOPs”), their investors to understand who holds their which give employees a greater opportunity securities. to take an ownership stake in the companies they work for. The ESOP Fairness Act would put qualified companies that meet established financial and disclosure standards, such as those traded on the OTCQX market, on par with exchange listed companies by allowing them to fully access the benefits of ESOPs.

8 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 9 VIDEOS & PODCASTS VIRTUAL INVESTOR CONFERENCES

In 2020, we collaborated with Proactive Virtual Investor Conferences is a leading View our 2021 calendar of over 25 events, Investor, the digital financial news online investor conference series, providing featuring a diversification of industry organization with operations in London, an interactive forum for publicly-traded segments and themes: , Toronto, Sydney, Vancouver and companies to meet and present directly to Perth, to film OTCQX executive interviews investors. Present your company’s story to a and to expand the scope and reach of our global investor audience and interact in real OTCQX Video Series. More than 40 OTCQX time with a live Q&A. companies participated in our Video Series during the year.

Season 4 of our OTCQB Podcast Series was our biggest to date, featuring 46 27 380 50K interviews with the entrepreneurs behind the companies that trade on our Venture Market. Investor Confernces Presenting Companies Presention Views

Our new Advisor Insights podcast launched with the first four interviews. The series presents our conversations with members of our OTC Markets’ Premium Provider PREMIUM PROVIDER Directory on the opportunities and DIRECTORY challenges our issuer community often encounters. Our Premium Provider Directory offers access Watch the latest OTCQX Videos. to providers tailored to meet the specific needs of the U.S. and international companies that Listen to latest OTCQB Podcast. trade on our OTCQX and OTCQB markets.

Listen to the new Advisors Insights Podcast. Our Premium Provider Directory categories continue to develop and now include: Access our series of educational webinars.

Accounting / Auditing Firm Media & Communications Audio / Visual News Dissemination Consulting Research Provider Governance & Compliance Securities Counsel Insurance Sustainability www.otcmarkets.com Investment Bank Transfer Agent Investor Relations

10 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 11 DATA DISTRIBUTION

BLUE SKY SECONDARY TRADING require that all U.S. and Canadian companies on 13 factors which provide a comprehensive U.S. BANKS RISK AND COMPLIANCE DATA provide this data, enabling investors to view of the risk profile as well as data points PERFORMANCE ANALYTICS access reliable information and companies that identify small cap listed securities that In 2020, we launched the Blue Sky Data Qaravan offers intuitive online software to build credibility in the public market. are categorized as a “Hot Sector” (Cannabis, Product, designed to provide the most and tools designed to give customers Share data provided by transfer agents Cryptocurrency/Blockchain, Covid-19). efficient, comprehensive view of Blue Sky access to interactive versions of FDIC is displayed alongside a “Verified” logo secondary trading compliance data for more reports and regulatory data. Banks indicating that the information is up-to-date Our suite of Compliance Data Products also than 16,000 OTC Equity Securities and 80,000 traded on the OTCQX market now have and has been verified by the transfer agent. includes the OTC Compliance Analytics OTC Corporate Fixed Income Securities complimentary access to the Qaravan This information is also disseminated Product, the Promotion Data File and the across 54 different rule sets. This product tools. through OTC Markets Group’s data OTC Quote History File. differentiates itself on both the depth of products to interested parties that rely on coverage and timeliness of accurate exemption Customized bank regulatory call reports our data for verified information on these data. By integrating these data feeds into their WIDER INFORMATION DISTRIBUTION Custom reports, queries and securities. daily operations, broker-dealers can streamline OTC Markets Group’s website, dashboards for bank executives, compliance with state securities laws for otcmarkets.com, is a publicly available regulators and analysts secondary trading. financial portal that provides company More relevant, targeted peer groups information, disclosure and real-time Leveraging Canari, our web-based compliance full depth of book to investors, broker- CECL module provides banks with a interface, users may conveniently drill down dealers and others researching securities turnkey approach in alignment with the and view state-by-state individual Blue Sky CRITICAL DATA POINTS on the OTCQX, OTCQB and Pink markets. latest FASB and regulator guidance compliance data. Additional dashboards & ADVANCED ANALYTICS Company quote pages also enable visitors provide a Blue Sky Compliance Map, Summary Canari, our web-based compliance interface, to easily identify key compliance data points, OTC Markets Group has continued to add Level Data by Jurisdiction, Time Period enables compliance and risk professionals to including: to its publicly available repository of bank Selection as well as download functionality. quickly view key data points across the OTC disclosure: Call Reports, Bank Holding market and drill down into specific Company Verified Profile Company Annual Reports (“Y-6”) and Bank This data reduces regulatory risks, lowers elements through a web-based interface. Transfer Agent Verified Share Data Holding Company corporate data (“Y-9”) compliance costs and enables additional and historical charts as well as Corporate Status opportunity for advisors, brokers and research Structure data for the more than 550 U.S. analysts to recommend and cover OTC Caveat Emptor Status community banks trading on the OTCQX, OTCQB, and Pink markets are available on securities. Hot Sector Status otcmarkets.com. Our Compliance Products provides broker- Promotion TRANSFER AGENT VERIFIED dealers and investment managers with Shell SHARES PROGRAM a comprehensive, quantitative tool for Canadian companies on the OTCQX and evaluating and automating risk processes. Shell Risk OTCQB Markets began providing verified The Small Cap Compliance product provides Two Independent Directors share data to OTC Markets Group in 2020, a compliance specific data set for evaluating through a transfer agent who participates in over 2,300 sub $500 million market cap the Transfer Agent Verified Shares Program. equities listed on a national . OTCQX Rules and OTCQB Standards now Newly added to the file: risk scoring based

12 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 13 GLOBAL JOURNEYS Our travels took us from Vancouver to Davos and onto the Nordic countries at the start of 2020. In March, as we put our travel plans on hold, we quickly moved to embrace new platforms to reach our network of issuers, advisors and industry counterparts in Australia, Asia, Africa, Europe, Canada and across the U.S.

“Hosting remote interviews with our issuers and advisors, digital conferences to share insights, and virtual market opens to celebrate companies around the world on their first day of trading on OTCQX – we continued our dialogue and stayed connected with our global community this year.”

Jason Paltrowitz EVP, OTC Markets Group

14 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 15 OXFORD METRICA STUDY

THE ADVANTAGE “The OTCQX market simplifies BENEFITS FOR INTERNATIONAL COMPANIES access to the U.S. capital markets for companies already reporting through A study by Oxford Metrica showed an increase in market value, liquidity, and U.S. ownership for international companies that cross- their home country exchange. Eligible trade on OTCQX. international companies that make their home country exchange filings publicly 26% available to U.S. investors may utilize Liquidity increase in the home market Rule 12g3-2(b) under the U.S. Securities Exchange Act to qualify for the OTCQX 2x market, providing international issuers U.S. ownership increase in the first year with a more cost-effective way to trade their securities in the U.S. through either American Depositary Shares or 128 Basis points value created ordinary shares.”

Andrew Reilly Partner, Rimon

16 OTC Markets 20202019 Annual Market Review OTC Markets 2020 Annual Market Review 17 IN THE MEDIA “The electronic nature of today’s marketplace requires coordination between the business-facing aspects of an organization with technology, legal and compliance is OTC Markets Group essential.” Chris Bok, CCO, OTC Link Alternative Trading Platform OTC Link Hires New CCO makes headlines in Law 360 the industry “Unbeknownst to many, the direct isn’t a novel concept – this process has paved the road to the public markets for countless small cap companies for nearly a decade. Dozens of companies – from community banks, “While bank have been volatile throughout the gold mines and robotics developers – have avoided the pandemic, we have seen recent activity on our market high cost and time pressures of the traditional IPO by that suggests going public will remain a viable path to entering the public markets more gradually, with OTC continued growth for private community banks once Markets’ direct-to-market listing, more colloquially known economic uncertainties stabilize. Moving into 2021, as the “Slow-PO.” management teams are thinking about making strategic moves to capitalize on the expected increase Jason Paltrowitz, EVP Corporate Services Should Unicorns Take a Page from the Small Cap Playbook? in M&A activity.” Traders Magazine

Laura Hamilton, Vice President Corporate Services Why Going Public Is Still an Option Independent Banker “Blue Sky data is a way to simplify and automate a complex, manual, and costly regulatory regime, reduce costs, and help issuers leverage broker and wealth management platforms to help tell their story.”

Matthew Fuchs, EVP Market Data OTC Markets Unveils ‘Blue Sky’ Compliance Dataset for OTC Securities Waters Technology

18 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 19 BEST MARKET

307 113 10.9%

Total Return International New Companies of the OTCQX $91.48B Companies International Index Total Dollar Volume

25 7 48.9%

Countries Companies that went Total Return of the Represented public on OTCQX OTCQX U.S. Index 461 Companies 59 94 121

Companies that upgraded Companies that paid U.S. Companies from Pink or a dividend OTCQB to OTCQX

$1.6T 95 10 136 Companies that Companies traded U.S. Banks moved from an exchange on OTCQX for to OTCQX more than 5 years

20 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 21 RANK SYMBOL COMPANY RANK SYMBOL COMPANY

1 ACUIF AcuityAds Hldgs Inc. 26 DSVMF Discovery Metals Corp. 2 LOMLF Nouveau Monde Graphite Inc. 27 KNTNF K92 Mining Inc 3 GDLC Grayscale Digital Large Cap Fund 28 XEBEF Xebec Adsorption Inc. 4 HVBTF HIVE Blockchain Technologies Ltd. 29 GBTC Grayscale Bitcoin Trust (BTC) 5 PBTHF PointsBet Holdings Limited 30 WPTIF Midas Gold Corp. 6 CTSDF Converge Technology Solutions Corporation 31 GLGDF GoGold Resources, Inc. 7 SKREF Skeena Resources Limited 32 ANXGF Anaconda Mining Inc. 8 BRGGF Bragg Gaming Group Inc. 33 AOTVF Ascot Resources Ltd. 9 NNXPF Nanoxplore Inc. 34 ALMTF Almonty Industries Inc. 10 VQSLF VIQ Solutions Inc. 35 PFBX Peoples Financial Corp. 11 HUTMF Hut 8 Mining Corp. 36 STWRY Software AG 12 AMXEF Amex Exploration Inc. 37 FTSSF First Cobalt Corp. 13 CXBMF Calibre Mining Corp. 38 TGCDF Teranga Gold Corporation 14 CCHWF Columbia Care Inc. 39 CRECF Critical Elements Lithium Corporation 15 ISENF IsoEnergy Ltd. 40 SILEF Silver Elephant Mng Corp. 16 LMGDF Lumina Gold Corp. 41 NXGWF Next Green Wave 17 RIOFF RIO2 Limited 42 POETF POET Technologies Inc. 18 NTTHF Neo Lithium Corp. 43 SGSVF Sabina Gold & Silver Corp 19 STLHF Standard Lithium Ltd. 44 CHPGF Chesapeake Gold Corp. 20 PBNC PB Financial Corporation 45 ADVZF Adventus Mng Corp. 21 MACE Mace Security International, Inc. 46 QTRHF Quarterhill Inc. 22 PLNHF Planet 13 Holdings Inc. 47 DYLLF Deep Yellow Ltd. 23 TRSSF TerrAscend Corp. 48 GTBIF Green Thumb Industries Inc. 24 GLATF Global Atomic Corp. 49 TAKOF Drone Delivery CDA Corp. 25 HEOFF H2O Innovation Inc. 50 WLMS Williams Industrial Services Group Inc.

22 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 23 VENTURE MARKET

519 234

International New Companies $26.91B Companies Total Dollar Volume

24 6

Countries Companies that went Represented public on OTCQB 903 Companies 363 188 Companies that U.S. Companies upgraded from Pink to OTCQB $56.0B 21 8 Market Capitalization Companies that moved U.S. Banks from an exchange to OTCQB

24 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 25 OUR OFFICES

OTC Markets Group operates offices in The OTC Market Center serves as an three locations: New York, Washington DC elegant venue for companies to meet and London. with their investors or for associations and industry groups to host meetings and Our headquarters in the heart of New York’s conferences. Financial District also hosts our OTC Market Center where we welcome our issuers, broker-dealer network and community of industry counterparts. OTC MARKET CENTER WASHINGTON DC NEW YORK NEW LONDON

26 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 27 CORPORATE SERVICES TEAM

Jason Paltrowitz Chris King Joseph Oltmanns Bob Power John Viglotti Andy Kyzyk EVP, Corporate Services SVP, International S VP, U. S. SVP, Client Relations SVP, Investor Access SVP, Advisor Relations

Joe Coveney Laura Hamilton Cecilia Schoenbaum Matt Liteplo VP, International VP, U.S. Banks VP, Client Relations Associate, Investor Access

Jonathan Dickson Rachel Nussbaum Cody Maldonado VP, International VP, U. S. Associate, Corporate Services

Violet Pagan VP, International

28 OTC Markets 2020 Annual Market Review OTC Markets 2020 Annual Market Review 29 FOLLOW US

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