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Frequently Asked Questions
  What information does Nasdaq require for a reverse stock split?
Identification Number 317

On November 1, 2023, the SEC approved new Nasdaq rules on notification and disclosure of reverse stock splits. Under the new rules, a listed company conducting a reverse stock split must:

  • Log into the Listing Center and complete the Company Event Notification including all supporting documentation five business days prior to the anticipated market effective date.
  • Publicly disclose the reverse stock split by 12:00 P.M. ET as least two business days prior to the anticipated market effective date.

Nasdaq will not process and effect a reverse stock split unless the above requirements have been satisfied and will halt trading in the security of any issuer that effects a reverse stock split without meeting these requirements. 

To notify market participants, Nasdaq will publish announcements of reverse stock splits on the Daily List and in an Equity Corporate Action Alert for the two business days prior to the market effective date. These are both available on the Nasdaq Trader website.

On November 8, 2023, the SEC also approved new Nasdaq rules related to regulatory halts for reverse stock splits. Under the new rules, Nasdaq will halt a Nasdaq-listed security starting around 7:50 p.m. ET on the day immediately before the market effective date of a reverse stock split, and re-open the security for trading at around 9:00 a.m. ET on the effective day of a reverse stock split. 

The following items outlined below are required to be submitted five business days prior to the anticipated market effective date, in addition to the submission of the Company Event Form:

  • Date of Board Approval, if applicable
  • Date of Shareholder Approval, if applicable
  • The definitive split ratio
  • The new CUSIP number
  • Date DTC made the new CUSIP number eligible
  • Current and post-split Total Shares Outstanding
  • Current and post-split Par Value, if applicable
  • Confirmation of the date when all legal filings will be submitted with the appropriate state or non-U.S. agency (Amended Articles of Incorporation, etc.), if applicable:
  • Confirmation of the date when all legal filings will be effective with the appropriate state or non-U.S. agency (Amended Articles of Incorporation, etc.), if applicable:
  • Copies of legal filings that will be filed
  • The expected market effective date (as of the opening of business);
  • A draft copy of the company’s release announcing the reverse stock split, which should include the ratio of the split and the marketplace effective date (open of business).  Please send the draft copy to CDO via email PRIOR to its release publicly and prior to the submission via the Electronic Disclosure Submission System
  • Please confirm the date/time of the company’s public disclosure (required dissemination is at least two business days before 12:00 P.M. ET prior to the anticipated effective date).
Publication Date*: 12/23/2022 Mailto Link Identification Number: 317
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