On July 23, the Securities and Exchange Commission approved a proposed rule change by NASDAQ Stock Market LLC to extend until today the temporary suspension of continued listing requirements related to bid price and market value of publicly held shares for listing on the NASDAQ Stock Market, effective as of NASDAQ’s filing with the SEC on July 13. As previously reported in the March 27 edition of Corporate and Financial Weekly Digest, the prior suspension was set to expire on July 19.
In its filing, NASDAQ asserted that the extension is appropriate to allow additional time for market conditions to return to normal and for deficient companies to develop plans to regain compliance with the continued listing requirements.
NASDAQ has stated that it does not expect a further extension of the suspension beyond July 31. Under the extended suspension, companies would not be cited for new bid price or market value of publicly held shares deficiencies during the suspension period, and the time allowed to companies already in a compliance period or in the hearings process for such deficiencies would remain suspended with respect to those requirements. Following the temporary suspension, any new deficiencies with the bid price or market value of publicly held shares requirements would be determined using data starting on August 3. When the suspension expires, companies that were in a compliance period as of October 16, 2008, when the suspension first began, would resume in that process at the same stage they were in on such date.
While the SEC’s rules provide that a self-regulatory organization’s proposed rule change does not become operative until 30 days after the date of its filing with the SEC, the SEC waived this requirement for the proposed rule change.
Click here to read the SEC’s notice regarding the NASDAQ rule change.