The Lebrecht Group, APLC

Suspension for Failure to Timely File Periodic Reports 

On May 10, 2005, the National Association of Securities Dealers, Inc. (“NASD”), through its subsidiary, the Nasdaq Stock Market, Inc. (“Nasdaq”), filed with the Securities and Exchange Commission a proposed rule change to limit the eligibility for quotation on the OTCBB of the securities of an issuer that is repeatedly late in filing required periodic reports.  The proposed rule change can be viewed at SEC Filing and we encourage all of our clients to review the release.

In December 2003, and again in July 2004, we circulated notices to our clients about the publication of SEC comment letters and responses by the SEC. These can be found at July 2004 Memo and December 2003 Memo.

Effective August 23, 2004, the deadline for filing a Form 8-K will be shortened to four business days. In addition to the existing disclosure items, there are eight new disclosure triggers, two disclosure items transferred from periodic reports (Q’s and K’s), and two expanded existing disclosure triggers. The final rule can be viewed at http://www.sec.gov/rules/final/33-8400.htm.

Re-Listing from Pink Sheets to OTCBB

Issuers whose securities are de-listed from the OTCBB because of failure to comply with Rule 6530, usually because they fall behind in their reporting obligations under the Securities Exchange Act of 1934, have two options when attempting to get re-listed once they are again compliant.