Client Alert
SEC Approves Temporary Suspension of NASDAQ Minimum Bid Price and Market Cap Listing Requirements
October 21, 2008
On October 17, 2008, the SEC approved a rule change proposed by The NASDAQ Stock Market LLC to temporarily suspend Nasdaq's continued listing requirements relating to (i) minimum bid price and (ii) market value of publicly held shares (“MVPHS”). Under the minimum bid price requirements, companies are subject to the delisting of their securities on the Nasdaq Stock Market for failing to maintain at least a $1 closing bid price for 30 consecutive business days; under the MVPHS requirements, companies are subject to delisting for failing to maintain a MVPHS ranging from $1 million to $15 million, depending on their particular Nasdaq market, for 30 consecutive business days. The suspension is effective October 16, 2008 through January 16, 2009.
To read our client alert about the Nasdaq rule suspension, please click here.
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