referencelibrarybanner
Board Diversity
Reference Library - Advanced Search
Find
 


Library 
 
Timeframe
Category
 
Sub-Category
** To make multiple selections, select the first criterion and then press and hold the Ctrl Key **
 
1- 1 of 1 Search Results for:
Libraries:   FAQs - Listings
Filters:   Initial Listing; All
 
Search   Clear


Expand All Printer Friendly View Mailto Link 
Page: 1 of 1
Frequently Asked Questions
  How does Nasdaq calculate the Market Value of Unrestricted Publicly Held Shares of a company offering units?
Identification Number 1836

Nasdaq calculates a company’s Market Value of Unrestricted Publicly Held Shares by multiplying the number Unrestricted Publicly Held Shares by the offering price of the common stock (or common stock equivalent) included in the units. For these purposes, Nasdaq attributes a value of $.125 for each “plain vanilla” warrant that is at- or out-of-the-money included in the unit. For warrants that are in the money or contain price protection or any other structured provisions that increase the potential dilution in the transaction, Nasdaq will attribute a value to each warrant equal to, or greater than, the value determined based on the Black Scholes model. 

For example, a unit is offered at $5.00 per unit and is structured to include one share of common stock and one warrant exercisable for $5.00.  For purposes of calculating the Market Value of Unrestricted Publicly Held Shares, Nasdaq would multiply the number of Unrestricted Publicly Held Shares by $4.875 ($5.00-$0.125). If this was a public offering for 3 million units, and there were no other Unrestricted Publicly Held Shares before the offering, then the offering size would be $15 million but the company’s Market Value of Unrestricted Publicly Held Shares would be $14,625,000.

Publication Date*: 5/15/2023 Mailto Link Identification Number: 1836
Page: 1 of 1
home_footer_links
Copyright_statement
App Store       Google Play       Listing Center Content RSS Feed
The Nasdaq Stock Market, Nasdaq, The Nasdaq Global Select Market, The Nasdaq Global Market, The Nasdaq Capital Market, ExACT and Exchange Analysis and Compliance Tracking system are trademarks of Nasdaq, Inc.
FINRA® and Financial Industry Regulatory Authority, Inc.® are registered trademarks of Financial Industry Regulatory Authority, Inc.