On January 29, the Securities and Exchange Commission approved NASDAQ’s proposal to amend its listing procedures to modify the timeframes for certain compliance periods and for a company to submit a plan to regain compliance. Below is a summary of the final rules.
The final rules increase the number of consecutive trading days of below required market value of listed securities that would trigger non-compliance from 10 days to 30 days. The final rules also increase the period for regaining compliance for companies that are non-compliant with market value of listed securities test and market value of publicly traded shares test from 90 days to 180 days. Under the final rules, the maximum amount of time that a company has to regain compliance after failing to meet the market value of listed securities or market value of publicly held shares requirements is 18 months, assuming the 180-day compliance period is exhausted, an appeal to a Hearing Panel is taken, and after further review by the NASDAQ Listing Council the delisting is stayed and an extension granted.
NASDAQ also increased the number of calendar days for noncompliant companies to submit a plan for compliance to the NASDAQ staff from 15 to 45, with the staff permitted to grant up to a 5-day extension for good cause shown.
Click here for the Final Rules.