John:
The bureaucrats are saying they are making listing requirement more stringent, not less. Guess I need to talk to the NASD to understand this a little better cuz I'm a little corn-fuse-ed. Will report back after calling DC. I'm pretty sure AKLM said in their 10Q that one of the reasons they are getting bounced from Nasdaq was failure to maintain a $5 bid price. They put out a release the other day on that......
biz.yahoo.com
Here's the blurb from the AKLM 10Q filed a couple of days ago.....
NASDAQ Delisting and Liquidity of Common Stock
In order to maintain the listing of the Common Stock on the NASDAQ National Market System (the "NMS"), at May 31, 1997, the Company was required, among other things, to maintain net tangible assets of at least $1 million. At May 31, 1997, the Company did not meet this requirement. Based on its review of certain information provided by the Company, NASDAQ informed the Company that it has determined that the Common Stock remain listed on the NMS pending NASDAQ's review of the Company's status upon filing of the Company's Annual Report on Form 10-K for the year ended August 31, 1997.
Upon such review, NASDAQ informed the Company that it has determined that the Common Stock remain listed on the NMS until February 1998, at which time the NASDAQ Stock Market's new maintenance criteria for securities listed on the NMS are anticipated to become effective. Under such criteria, the Company is required, among other things, to maintain a minimum bid price of $5 per share of Common Stock. The Company does not currently meet the minimum bid price criteria (although, as of November 30, 1997, the Company does meet the other quantitative maintenance criteria). Accordingly, no assurance can be given that the Common Stock will not be delisted from trading on the NMS.
So it does appear that the minimum $5 bid is a requirement for continued listing on the NMS.
If the Common Stock were to be delisted from trading on the NMS, in order to obtain relisting of the Common Stock on the NMS, the Company must satisfy quantitative designation criteria, including a minimum net tangible assets requirement which it does not currently meet. No assurance can be given that the Company will meet such relisting criteria in the near future.
No I'm a little unclear on this part. Are the "relisting" requirements the same as the initial listing requirements? I'll ask the NASD.
If the Common Stock were to be delisted from trading on the NMS, the Company may seek to have the Common Stock listed for trading on the NASDAQ Small-Cap Market. Although the Company meets the current listing criteria for the NASDAQ Small-Cap Market (other than a minimum bid price of $4 per share of Common Stock), no assurance can be given as to the Company's ability to obtain listing for the Common Stock on the NASDAQ Small-Cap Market or as to the Company's ability to meet the maintenance requirements thereof.
So when you're gonna get booted from the NMS you've got to meet the initial listing requirements for the SmallCap list. Otherwise.....
If the Common Stock were to be delisted from trading on the NMS and were neither relisted thereon nor listed for trading on the NASDAQ Small-Cap Market, trading, if any, in the Common Stock may continue to be conducted on the OTC Bulletin Board or in the non-NASDAQ over-the-counter market. Delisting of the Common Stock would result in limited release of the market price of the Common Stock and limited news coverage of the Company and could restrict investors'
interest in the Common Stock and materially adversely affect the trading market and prices for the Common Stock and the Company's ability to issue additional securities or to secure additional financing. In addition, if the Common Stock were not listed and the trading price of the Common Stock were less than $5.00 per share, the Common Stock could be subject to Rule 15g-9 under the Securities
Exchange Act of 1934 which, among other things, requires that broker/dealers satisfy special sales practice requirements, including making individualized written suitability determinations and receiving a purchaser's written consent prior to any transaction. In such case, the Common Stock could also be deemed to be a 'penny stock' under the Securities Enforcement and Penny Stock Reform Act of 1990, which would require additional disclosure in connection with trades in the Common Stock, including the delivery of a disclosure schedule explaining the nature and risks of the penny stock market. Such requirements could severely limit the liquidity of the Common Stock.
One of the obvious benefits (if you're short) of seeing a stock get tossed to the BB is many institutions can't own stocks that are not "listed". But you already knew that.
drakes353
PS to Val: Ya know ya love me man. Now get outta here. |
