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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.
 
However, pursuant to Listing Rule 5810(c)(3)(A)(iv), if a Company‚Äôs security fails to meet the continued listing requirement for minimum bid price and the Company has effected one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then the Company shall not be eligible for a 180-day  compliance period and the Listing Qualifications Department shall issue a Staff Delisting Determination. 
 
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*: 4/10/2023 Mailto Link Identification Number: 1516
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