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Frequently Asked Questions
  Is there a limit to the number of times a listed company may effect a reverse stock split to maintain or regain compliance with the bid price requirement?
Identification Number 1516
While Nasdaq rules do not impose a specific limit on the number of times a listed company may effect a reverse stock split to maintain or regain compliance with the bid price requirement, a series of reverse stock splits may undermine investor confidence in securities listed on Nasdaq, especially where the reverse stock splits follow dilutive transactions. Accordingly, Nasdaq may determine that it is not in the public interest to maintain the listing of a company that has effected a series of reverse stock splits, even if the company is in compliance with the minimum price requirement as a result of those reverse stock splits. Similarly, Nasdaq may determine that a series of dilutive transactions, which result in a sustained decline in the securities price, raise public interest concerns, even where the company otherwise complies with all applicable rules, such as the shareholder approval and notification requirements.
A company considering whether a reverse stock split or proposed transaction raises such concerns is encouraged to contact its Listing Qualifications analyst by phone at +1 301 978 8008 to discuss the transaction prior to entering into a definitive agreement.
Publication Date*: 4/24/2018 Mailto Link Identification Number: 1516
material_search_footer*The Publication Date reflects the date of first inclusion in the Reference Library, which was launched on July 31, 2012, or a subsequent update to the material. Material may have been previously available on a different Nasdaq web site.
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