Can a seasoned issuer effect a reverse stock split to meet the minimum bid price requirement for initial listing?
A seasoned issuer may complete a reverse stock split to comply with NASDAQ’s minimum bid price requirement for initial listing. Generally, when this happens, NASDAQ will require that the issuer continue to meet the bid price requirement for a minimum of five consecutive trading days after the split takes place. This means that on each of the five days the issuer must at some point during normal trading hours have a bid price which is at or above the applicable initial listing criteria. Please note that NASDAQ may, in its discretion, also require an issuer to maintain the required minimum bid price for a period in excess of five consecutive business days, but generally no more than ten consecutive business days, before determining that the issuer has demonstrated compliance.
Related Questions
- My company is in the Hearings process for failure to meet the minimum $1.00 bid price requirement. Can we still submit a transfer application?
- Can a seasoned issuer effect a reverse stock split to meet the minimum bid price requirement for initial listing?
- What is NASDAQs compliance process for companies failing to meet the $1.00 minimum bid price requirement?
