Nasdaq Proposes Stricter Delisting Rules for Low-Priced Stocks - Dechert Summary On August 8, 2024, The Nasdaq Stock Market LLC (“Nasdaq”) proposed a rule change regarding its minimum bid price compliance periods and delisting procedures 1 The proposed change includes stricter deadlines for companies failing to meet Nasdaq’s Minimum Bid Price Requirement (as defined below) Under Nasdaq Rule 5550(a)(2), companies must maintain a minimum bid price of $1 00
SEC approves Nasdaq proposal modifying minimum bid price compliance . . . In August 2024, Nasdaq submitted a new rule proposal aimed at accelerating the delisting process for companies with shares that trade below $1 Briefly, under the proposal, a company that was non-compliant with the $1 minimum bid price requirement and did not regain compliance after two 180-day compliance periods would be suspended from trading on Nasdaq
Order Granting Approval of a Proposed Rule Change to Modify the . . . The Nasdaq Rules set forth the circumstances that can curtail or alter the bid price compliance periods First, Nasdaq Rule 5810(c)(3)(A)(iii) provides that if a company’s security has a closing bid price of $0 10 or less for 10 consecutive trading days during any bid price
SEC Approves Nasdaq Proposed Rules Modifying Minimum Bid Price . . . The rule changes revise Nasdaq Rules 5810 and 5815, which require that a company with equity listed on Nasdaq maintain a minimum bid price of at least $1 per share Pursuant to Nasdaq Rule 5810(c)(3)(A), a company that fails to meet the minimum bid price requirement is granted an automatic compliance period of 180 calendar days from the date Nasdaq notifies the company of the deficiency to
Nasdaq Proposes Accelerated Delisting Rules for Companies Trading Below . . . On August 6, 2024, Nasdaq proposed a rule change aimed at accelerating the delisting process for companies with shares trading below US$1 00 and limiting the time a noncompliant security can remain listed on Nasdaq Under the proposal, a company would (1) be suspended from trading on Nasdaq if the company fails to meet the US$1 00 bid price requirement for more than 360 days, and (2) face
Nasdaq Proposes Modifications to Delisting Process for Securities . . . On August 6, 2024, the Nasdaq Stock Market LLC (“Nasdaq”) submitted proposed rule changes to the U S Securities and Exchange Commission (“SEC”) If adopted, the revised rules would modify the Nasdaq delisting process in respect of securities that fail to maintain a closing bid price of at least $1 00 per share Specifically, the proposed rules would accelerate delisting for a company
New NYSE and Nasdaq Listing Requirements Nasdaq Rule Changes Under previous Nasdaq listing standards, companies were required to maintain a minimum bid price of $1 00 per share If a company's share price fell below this threshold for 30 consecutive business days, Nasdaq would notify the company, granting it a compliance period of 180 calendar days to rectify the deficiency
SEC Approves Nasdaq Rule Change on Reverse Stock Splits and Minimum Bid . . . The new rule, which applies immediately, amends Nasdaq Listing Rule 5810(c)(3)(A) to modify the application of the bid price compliance periods where a listed company takes an action to achieve compliance with the $1 00 minimum bid price continued listing requirement (the bid price requirement) and that action causes non-compliance with another listing requirement
Nasdaq Amends Bid Price Compliance Rules to Accelerate Delisting . . . Nasdaq has modified Rule 5810(c)(3)(A) to allow for an accelerated delisting process where a listed company takes action, such as a reverse split, to regain compliance with the bid price requirement for continued listing, but that as a result of the action, the company falls below other listing standards, such as the minimum number of round lot holders, or minimum number of shares in the
Nasdaq Changes Rules Regarding Minimum Bid Price Compliance Periods and . . . To address this issue, Nasdaq revised its listing rules to provide that if a company fails to meet the bid price requirement and the company has effected a reverse stock split over the prior one-year period, the company would not be eligible for any compliance period and the Listing Qualifications Department will issue a Delisting Determination under Rule 5810 with respect to that company’s
Nasdaq Amends Minimum Bid Price Rule to… | Kelley Drye Warren LLP The Prior Rule and the Amended Rule Pursuant to Nasdaq Listing Rule 5450(a)(1) for Nasdaq Global Market and Nasdaq Global Select Market companies and Nasdaq Listing Rule 5550(a)(2) for Nasdaq Capital Market companies, listed companies must generally maintain a minimum bid price of $1 00; failure to do so for a period of 30 consecutive business