Nasdaq Gives Struggling Stocks More Time to Bounce Back
Published Date: 1/23/2025
Notice
Summary
Nasdaq just got a rule upgrade! Companies that don’t keep their stock prices above a certain minimum now have a bit more flexibility on how long they have to fix things and appeal delisting decisions. This change helps companies stay listed longer under certain conditions, giving them a fairer shot without rushing, starting early 2025.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
No Nasdaq Stay After 360 Days
If a Nasdaq-listed company was given a second 180-day bid-price compliance period and still fails to meet the $1.00 minimum (i.e., after a total of 360 days), a timely request for a Hearings Panel review will not stay the suspension of its securities on Nasdaq. While that appeal is pending, the company's shares would trade in the over-the-counter (OTC) market, although the Hearings Panel still may, at its discretion, grant up to an additional 180 days from the Delisting Determination to regain compliance.
Reverse Split Within 1 Year Triggers Immediate Delisting
If a company effected a reverse stock split within the prior one-year period and later fails to meet Nasdaq's $1.00 minimum bid price requirement, the company will not be eligible for any of the 180-day compliance periods and the Listing Qualifications Department shall issue a Delisting Determination. The company may still appeal to a Hearings Panel, which may in its discretion grant up to 180 days to regain compliance.
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