Bill, yes there are other criteria, and CMTR probably satisfies them, but I don't think that will stop CMTR from being delisted. Only trading over a $1 will do it. After 3 years of holding CMTR, this was the last straw for me. I'm out of here! Good luck.
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For Release:
Contact:
Friday, August 22, 1997
Robert D. Leahy - (202) 728-8933
Nasdaq Listing Requirements Approved by the SEC
Washington, D.C. The Nasdaq Stock Market, Inc. today announced that the U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's proposed listing qualification standards. The changes will increase financial listing standards by some 50 percent on both the Nasdaq National Market and The Nasdaq SmallCap Market. In addition, corporate governance requirements that apply to the National Market will now also apply to the SmallCap Market. Nasdaq is also imposing a peer review requirement of all auditors of Nasdaq-listed companies.
Under the new listing requirements, the alternative to the $1 minimum bid price has been eliminated, which means that all Nasdaq-listed issues must trade for at least $1. If a stock share price falls below $1 for 30 days, it has 90 days to come back into compliance (by closing at or above $1 for ten consecutive days) before being subject to delisting.
Approved non-financial changes include:
Requiring the SmallCap Market to have the same corporate governance standards as the Nasdaq National Market. These include requiring a minimum of two independent directors; an audit committee with a majority of independent directors; an annual shareholders meeting; and shareholder approval for certain corporate actions such as large acquisitions and stock issuances. These standards will afford investors in this market a means to become more actively involved in corporate affairs. The shareholder approval requirement should serve as a barrier to stock issuances currently being executed in The Nasdaq SmallCap Market without the prior knowledge of investors. The audit committee, independent director, and annual meeting requirements will provide additional safeguards to the investing public. Requiring auditors of Nasdaq-listed companies to be subject to peer review of their accounting and audit practices every three years, by organizations such as the American Institute of Certified Public Accountants (AICPA), SEC Practice Section, or comparable review organizations.
The new entry requirements will be effective immediately and will apply retroactively to issuers that filed to list after March 3, 1997, when the rule proposal was filed with the SEC. The continued listing requirement will be effective six months from today.
"The newly approved requirements represent our commitment to enhancing the quality and strength of our market. We will continue to play a major role in helping companies raise capital, while ensuring that investors are duly protected and provided a wide array of high
quality investment choices," said Frank Zarb Chairman, CEO, and President of the National Association of Securities Dealers, Inc., parent organization of The Nasdaq Stock Market.
A summary of the rule will be available shortly on the Nasdaq World Wide Web site at nasdaq.com.
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