NASDAQ Suspends Minimum Closing Bid Price and Market Value Listing Requirements until January 19, 2009
On October 16, 2008, in light of the large number of companies facing delisting from NASDAQ as a result of “the current extraordinary market conditions,” NASDAQ temporarily suspended the requirements for continued listing which mandate that listed companies maintain a minimum bid price and market value of publicly held shares. The suspension will be effective for a three-month period until January 19, 2009. Companies will not be cited for new deficiencies in these two areas during this period.
In addition, companies currently facing delisting will be frozen at the same stage of the compliance process they were in on October 16, 2008. The NASDAQ temporary suspension applies only to the bid price and market value requirements. Other listing requirements will continue to be enforced. NASDAQ is contacting each affected issuer regarding new compliance dates and the impact on each such issuer. In its rule filing with the SEC (which has now become effective), NASDAQ noted that there were 344 NASDAQ listed securities trading below $1.00 on October 9, 2008 and another 300 trading between $1.00 and $2.00 on that date.
As of today no similar action has been taken by the New York Stock Exchange.