Here is better de-listing info:
Nasdaq Chairman Hardwick Simmons, speaking at the Security Traders Assn. annual conference in Boca Raton, Fla., said about 500 of Nasdaq's 3,800 stocks are priced under $1, as the long bear market has hammered equity values.
"That's putting us to the test of whether we want to change our old rules about delisting stocks trading under $1," he said. "Some of these are real companies with real balance sheets."
Simmons did not give specifics about revising Nasdaq's rules, and Nasdaq representatives in Washington offered no further comment.
Nasdaq already has taken steps to help companies that are in danger of violating its listing rules. Under previous rules, a company on the Small Cap market (the lower tier of Nasdaq) whose stock fell below $1 for 30 days had 90 days to bring the shares back above that level before facing delisting. Nasdaq extended that grace period to 180 days in January.
"If a company's stock price goes under a dollar, the company knows best what kinds of transactions will enhance its business and financial stability, many of which take longer than 90 days to complete," said Helen Scott, co-chair of Nasdaq's listing and hearing review council.
After the initial grace period, if a company meets one of three listing standards--market capitalization of $50 million, net annual income of $750,000 or stockholders' equity of $5 million--the firm can apply for an additional 180-day grace period to bring its stock price back up. |
