October 8, 2019
Dear SEC, Please re-consider this rule. There are countless people, including myself, who have large sums of money invested in these companies that you are trying to block quoting of. Following through with this will destroy the wealth that I've built for my family. I have a substantial amount of money investing in Fund.com which has not reported financials for many years, but has been granted receivership in Delaware and is working towards publishing financials. I own many companies that sent me, via mail, financial reports throughout the year, but do not publish their financials on the OTC markets. If the purpose is to crack down on those that are frauds why do you have to destroy the shareholders that own the responsible companies? Why do you feel the need to take away peoples freedom to do what they want with their money? All the companies that I own that are not reporting publicly either mail me financials or post them on their website. If people are willing to put their hard earned money to companies that aren't reporting financials then it is their right, by protecting one class of the people you are hurting another, and you think you are doing good. I would definitely be willing to contribute to a better rule and put you in touch with others in my "investing community" that can offer great input as well. A few thoughts: 1. Companies go dark all the time by filing 15-12B if they have under 300 shareholders. The problem is, that thousands of people can own shares but it isn't in the persons name and so it is recognized as 1 shareholder, put a stop to this ridiculous rule. Companies are going dark all the time because of this when there are actually more than 300 different shareholders. 2. The OTC markets non reporting designations are here for a reason. It is expensive to be listed with the SEC and for some it is expensive to be registered with the OTC markets. Some companies go dark and stop reporting because it is cheaper and that money can stay within the company or be distributed to shareholders. This is a good thing. 3. Don't just throw out a net and end quoting of these companies. Contact management and see if they are operating. If they are opening up their books to shareholders let them be, but if they are not then fine them. Many times I've emailed companies asking for financials and they don't respond. I'll purchase one share and contact them again noting that I am a shareholder and they still won't talk with me. Many states have laws where shareholders have to be given access to the books, enforce these laws that are already in place. There is no doubt you will destroy many hard working peoples life's by allowing this to happen. Many of us find our way here because we have an advantage, the bigger funds can't touch these stocks and there are no analyst. That leaves just us to dig in and get the financials and find value in a company that doesn't exist on the major exchanges. I will lose $100,000+ if you put this rule in place. These are illiquid stocks that you are just going to shut down. I'll have to tell my wife that all of our savings are lost. I won't have to tell my kids because they are only 5 and 2 and a baby on the way. Just like everything in this country those looking for an edge to better themselves will get screwed, the wealthy will continue building out their moat, and those that don't put in the effort get protected by stupid rules like this. The SEC will go on oblivious thinking they did the right think, while I pick myself up, continue to grind through life to give my kids a better life than I had. Please consider the power you have and those that can be destroyed by not allowing these companies to be quoted. Sincerely, Richard Kogut