Deficient issuer failed to meet nasdaq continued listing requirements

Nasdaq Delisting Rules | Finance - Zacks

Item Notice of Delisting or Failure to Satisfy a Continued Listing Rule or did not meet the minimum bid price requirement set forth in Nasdaq to notify Nasdaq of its intent to cure the minimum bid price deficiency by. *Nasdaq FSI: *Deficient: Issuer Failed to Meet NASDAQ Continued Listing Requirements What are the ramifications of this? (ZICA if anyone is. and Forms · Regulatory Requirements · Symbol Reservation Requests A summary of Nasdaq's continued listing standards are included in our The Listing Rules can be found here. Deficiency, Market, Notification Date . Issuer Alerts.

deficient issuer failed to meet nasdaq continued listing requirements

Another action that brings a deficiency notice is a company's failure to file periodic reports by dates specified by the Securities and Exchange Commission. Receipt of Deficiency Notice Any Nasdaq company receiving a deficiency notice has four business days to file an 8-K form with the SEC or to issue a press release to announce the notice. However, reporting failures require a company-issued press release. The company must send a copy to Nasdaq before issuing the press release.

Return to Compliance After receiving a deficiency notice, a company has calendar days to return to compliance.

Helping Smaller Public Companies Navigate the NASDAQ Delisting Process

Report-filing offenders must file the required reports, and then must file subsequent reports by the due dates. To receive this, the company must notify Nasdaq of its intent to correct the deficiency. Nasdaq may exercise its discretion in determining whether it believes the company can cure the deficiency. Delisting Letter If a company fails to comply with the minimum requirements during the first grace period or any second grace period, Nasdaq will issue a delisting letter to the company.

deficient issuer failed to meet nasdaq continued listing requirements

As with the deficiency notice, the company must notify the investing public of the delisting letter within four business days, by filing an 8-K with the SEC.

The company then can appeal its delisting to the hearings panel. This trend is especially prevalent with smaller public companies.

Nasdaq Delisting Rules

As a result of reductions in the market price of their publicly-traded stock, many such companies are finding that they no longer meet the minimum bid price requirements for continued listing on NASDAQ. If a company fails to meet this listing requirement for a period of thirty consecutive trading days NASDAQ will initiate its delisting process.

The Delisting Process 1. If a company listed on the NCM fails to meet the minimum bid price requirement for a period of thirty consecutive trading days, it can expect to receive a deficiency notice from NASDAQ. The deficiency notice will identify the listing deficiency and will provide that the company has a period of calendar days during which to regain compliance with the continued listing requirements.

Within four business days of the receipt of the deficiency notice, a company must publicly disclose the receipt of the deficiency notice by filing an 8-K with the SEC.

Helping Smaller Public Companies Navigate the NASDAQ Delisting Process

The 8-K must disclose the date the deficiency notice was received, describe the listing requirement the company has failed to satisfy and detail any action it plans to take in response to such deficiency notice. If it does not appear to NASDAQ that it is possible for the company to cure the deficiency, this second grace period will not be granted. If a company is unable to regain compliance within the grace period including the additional grace period, if availableNASDAQ will issue a delisting letter.

Within four business days of the receipt of the delisting letter, the company must publicly announce the receipt of the letter by filing an 8-K with the SEC.

The timely submission of this request will stay the delisting process pending the decision of the panel. At a hearing the company will be required to present a plan to regain compliance with the continued listing standards. The plan of compliance should describe the manner in which the company will regain and maintain compliance with the NASDAQ continued listing standards.

NASDAQ has stated that the plan should include the implementation of a reverse stock split in the near term — no later than days after receipt of the delisting letter.