Found this artice regarding NEW listing guidlines from Nasdaq. Notice the date (August 25, 1997). I think a number of companies are hearing from Nasdaq.
If Wave was telling the truth about an OEM deal, then even if they do get delisted, they should be back by the 1st quarter 1998, IMO.
Sure hope their Sept. meeting goes well!
Bulletin ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿAugust 25, 1997
Nasdaq Announces New Listing Requirements
Nasdaq National Market Listing Requirements
The Nasdaq SmallCap Listing Requirements
Nasdaq National Market Listing Requirements
The Nasdaq Stock Market today announced new listing requirements to further strengthen both the quantitative and qualitative requirements for issuers listing on Nasdaqr. The U.S. Securities and Exchange Commission approved on August 22nd the proposed changes. These changes materially enhance the threshold criteria necessary to qualify for listing on the Nasdaq National Market.
The new listing requirements are detailed in the attachment. Significant changes are highlighted below:
$1 Minimum Bid Price Required for Common and Preferred Stock
Common and preferred stock must have a minimum bid price of $1. The $1 bid price requirement provides a safeguard against certain market activity associated with low-priced securities, and also enhances the credibility of the market. Nasdaq is the only market that has a stated minimum bid price requirement.
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Increase in the Quantitative Requirements
Increases to the quantitative requirements are detailed in the attached table. These increases will strengthen the financial criteria in a manner consistent with the goal of increasing the quality and stability of Nasdaq companies, while preserving the ability of qualified companies to raise capital.
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Adoption of Market Capitalization Alternative
The adoption of a market capitalization test will help foster capital formation for Nasdaq National Market caliber companies that would otherwise not qualify due to accounting conventions associated with certain business combinations and specialized industries under the heading "Initial Listing 3." The attached table outlines the specific requirements.
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Adoption of Peer Review Requirement
All independent auditors for Nasdaq-listed companies must be subject to practice monitoring under a program such as the AICPA SEC Practice Section peer review program. Such a program must provide that an accounting firm's quality control system be peer reviewed every three years.
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Nasdaq believes that the new requirements will further the protection of investors while enhancing the quality of The Nasdaq Stock Market. Companies failing to satisfy the new continued listing requirements will be allowed six months to meet the new requirements. During this six month period, companies should initiate appropriate corporate action necessary to achieve full compliance.
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Nasdaq National Market Requirements
RequirementsInitial Listing
1Initial Listing
2Initial Listing
3Continued Listing
1&2Continued Listing
3Net Tangible Assets1 $6 million$18 millionN/A$4 millionN/AMarket Capitalization2
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Total Assets
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Total RevenueN/AN/A$75 million
or
$75 million
and
$75 millionN/A$50 million
or
$50 million
and
$50 millionPretax Income
(in latest fiscal year or 2 of last 3 fiscal years)$1 millionN/AN/AN/AN/APublic Float (shares)31.1 million1.1 million1.1 million750,0001.1 millionOperating HistoryN/A2 yearsN/AN/AN/AMarket Value of
Public Float$8 million$18 million$20 million$5 million$15 millionMinimum Bid Price$5$5$5$1$5Shareholders
(round lot holders)4400400400400400Market Makers33424Corporate GovernanceYesYesYesYesYes
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1Net tangible assets means total assests (excluding goodwill) minus total liabilities.
2For initial or continued listing under option 3, a company must satisfy one of the following to be in compliance: the market capitalization requirement or the total assets and the total revenue requirement.
3Public float is defined as shares that are not held directly or indirectly by any officer or director of the issuer and by any other person who is the beneficial owner of more than 10 percent of the total shares outstanding.
4Round lot holders are considered holders of 100 shares or more.
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