Frequently Asked Questions

 

GENERAL INFORMATION

 

WHAT IS OTC?

An OTC market is a decentralised market where market participants trade through bilateral negotiations, in shares and other securities that are not listed on an exchange.

 

WHAT IS OTC EXPRESS?

OTC Express, operated by Singular Systems, is a simple web-based bulletin board for investors to find one another and an efficient back-office infrastructure to process independently, bi-laterally negotiated, concluded transactions, while maintaining all the tried-and-tested features of the previous Equity Express platform.

 

WHAT IS AN ADVERT?

An advert is not the same as a bid to buy or an offer to sell and placing an advert does not constitute a trade. An advert is merely a notice to the investing public of your intention to buy or sell shares, and is only the first step in the trading process. After you place an advert you will have access to the contact information of all prospective counterparties. You must chose who you want to negotiate a deal with and contact them.

 

HOW DO I REGISTER TO USE THE BULLETIN BOARD?

Before using the website, you must register. You may register on the website www.otcexpress.co.za or telephonically by calling the Singular Systems helpdesk on 011 321 5455. You must provide us with the relevant supporting documentation which we will request from you for purposes of carrying out the identification and verification process in terms of FICA. Once you have successfully registered, you will receive an SMS and/or e-mail notification confirming your registration and providing you with a username and password to enable you to access our site. You must also accept the terms and conditions of the bulletin board platform.

 

IF I AM ALREADY REGISTERED AND FICA VERIFIED DO I NEED TO REGISTER AGAIN?

No. If you already have a username and password, and have undergone the identification and verification process in terms of FICA previously, you will not be required to re-register. You can log in to the website www.otcexpress.co.za with these same details. However, if any of your details have changed you will be required to submit supporting documentation.

 

HOW DO I ADVERTISE SHARES?

You can advertise your intention to buy or sell shares via the OTC Express platform. This can be accessed directly on the website www.otcexpress.co.za or telephonically by calling the Singular Systems helpdesk on 011 321 5455. An advert is not the same as a bid to buy or an offer to sell and placing an advert will not result in automatic matching. An advert is merely a notice to the investing public of your intention to buy or sell shares, and is only the first step in the trading process. After you place an advert you will have access to the contact information of all prospective counterparties. You must chose who you want to negotiate a deal with and contact them. Once you have agreed on a deal with a counterparty either party must load a trade agreement on the website www.otcexpress.co.za or telephonically by calling the Singular Systems helpdesk on 011 321 5455. When both parties have electronically signed the trade agreement the transaction is concluded and settlement will take place.

I DON’T WANT TO HAVE TO NEGOTIATE A SHARE DEAL DIRECTLY WITH POTENTIAL COUNTERPARTIES. CAN I GET ASSISTANCE WITH TRADING ON THIS BASIS?

Yes. Shareholders have access to the services of a broker, Legae Securities, for the purposes of trading on this basis, at no additional cost to you. You may enquire telephonically through the Singular Systems helpdesk or contact Derick Meintjes of Legae Securities directly on 011 722 7337 or derickm@legae.co.za.

 

Please be advised that should you choose to use the services of Legae Securities you will be required to sign a mandate with 27Four Investment Managers (Pty Ltd. It should be noted that the services rendered under this mandate will be regulated by the Financial Advisory and Intermediary Services Act (“FAIS”), and that Legae Securities (Pty) Ltd is a FAIS Juristic Representative of 27Four Investment Managers (Pty) Ltd. Derick Meintjes is a FAIS Representative of 27Four Investment Managers (Pty) Ltd. 27Four Investment Managers (Pty) Ltd is a Licensed Financial Services Provider with FSP No. 31045.

 

WHAT HAPPENS AFTER I HAVE PLACED AN ADVERT?

Your advert will remain on the OTC Express bulletin board for 90 days (unless a lesser period is requested), after which your advert will lapse. You can place a new advert if you wish to.

 

Once you have placed an advert you will have access to the contact information of all prospective counterparties who are advertising their intention to buy or sell shares. It is up to you to choose a prospective counterparty with whom to negotiate a deal.

 

If you do not enter into a trade agreement with a counterparty via the OTC Express platform the shares will remain yours. There is no binding agreement between you and your counterparty until both of you have electronically signalled acceptance of the terms of the trade agreement on the website www.otcexpress.co.za.

 

CAN I AMEND MY ADVERT?

Once your advert has been posted on the bulletin board, you may not amend it.  If you wish to change the information on your advert, you must delete the existing advert and place a new advert.

 

The Bulletin Board operates 24/7 meaning that investors may post adverts to buy and adverts to sell, and trade agreements at any time. However, the settlement of concluded transactions may take place between specific hours, to accommodate any transfer secretarial end-of-day reconciliation procedures where applicable.

 

WHAT ARE THE BULLETIN BOARD OPERATING HOURS?

The Bulletin Board operates 24/7 meaning that investors may post adverts to buy and adverts to sell, and trade agreements at any time. However, the settlement of concluded transactions may take place between specific hours, to accommodate any transfer secretarial end-of-day reconciliation procedures where applicable. For example, any deals loaded and/or accepted outside of the operating hours will only be settled the next business day.

 

WHO CAN I CONTACT IF I HAVE A QUERY REGARDING THE OTC EXPRESS PLATFORM?

You can speak to any of the consultants at the Singular Systems call centre on 011 321 5455.

 

BUYING SHARES

 

HOW DO PEOPLE ADVERTISE TO BUY SHARES?

You can advertise to buy shares directly through the website www.otcexpress.co.za or telephonically through the Singular Systems call centre on 011 321 5455, where an agent will take you through a step by step process. Before you can advertise to buy shares you must deposit funds into the designated bank account held by Singular Systems. In line with the provisions of FICA, we may only furnish you with these bank account details once you have successfully registered and completed the FICA verification process.

 

HOW MUCH DOES IT COST?

Administration costs on each buy transaction is 1.5% plus VAT of the value of the trade subject to the relevant counter's minimum fee plus VAT. STT will also be levied at 0.25% of the value of the trade. There are no additional costs.

 

SELLING SHARES

 

HOW DO I ADVERTISE TO SELL SHARES?

You can advertise to sell shares directly through the website www.otcexpress.co.za or telephonically through the Singular Systems call centre on 011 321 5455, where an agent will take you through a step by step process. The OTC Express platform will not allow you to advertise to sell shares that you do not own.

 

HOW MUCH DOES IT COST?

Administration costs on each sale transaction are 1.5% plus VAT of the value of the trade subject to the relevant counter's minimum fee plus VAT.

 

HOW MUCH TAX WILL I PAY IF I SELL SHARES?

Share sales may be subject to capital gains tax and/or income tax. You are advised to contact your financial advisor to be fully cognisant of the tax consequences of transacting in your Lenmed shares. Tax will NOT be deducted automatically as part of the settlement process.

 

I SOLD MY SHARES. WHEN WILL I GET MY MONEY?

You can expect to receive the money in your bank account between 3 to 5 working days after your trade agreement has been concluded on the OTC Express platform.

 

WILL I EARN INTEREST ON THE MONEY KEPT IN THE DESIGNATED BANK ACCOUNT?

No. Money deposited in the designated bank account is held purely as security for settling transactions, therefore no interest will accrue to that money. Any interest that may accrue to the funds in the designated bank account will be used to pay for the bank charges relating to that designated bank account.