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Frequently Asked Questions
  What is Nasdaq's compliance process for companies failing to meet the $1.00 minimum bid price requirement?
Identification Number 354

If a company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, Nasdaq will send a deficiency notice to the company, advising that it has been afforded a "compliance period" of 180 calendar days to regain compliance with the applicable requirements.

However, if a company has effected a reverse stock split within one year of noncompliance or 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. 

If the company does not regain compliance with the bid price requirement a second 180-day compliance period may be available.  A company listed on the Nasdaq Capital Market may be eligible for an additional 180-day compliance period if it meets the market value of publicly held shares requirement for continued listing, all other initial inclusion requirements for the Capital Market, except for the bid price requirement, and provides written notice that it intends to regain compliance with the bid price requirement during the second 180-day compliance period, by effecting a reverse stock split if necessary.  

A company that fails to regain compliance with the bid price requirement following the expiration of the second 180-day compliance period will be issued a delisting letter and will have its securities suspended from trading on the Nasdaq Stock Market, effective on the seventh calendar day following receipt of Staff’s delist determination. The company may still appeal Staff’s determination which will stay the delisting, but the company’s securities will remain suspended from trading on Nasdaq through the duration of the Hearings Process.

Similarly, if a company listed on the Nasdaq Global Select Market or Global Market company is unable to comply with the bid price requirement prior to the expiration of its 180-day compliance period, it may transfer to the Nasdaq Capital Market, so as to take advantage of the additional compliance period offered on that market.  Such a company must meet the $1 million market value of publicly held shares requirement for continued listing, and all other requirements for initial listing on the Nasdaq Capital Market (except for the bid price requirement) and provide written notice that it intends to regain compliance with the bid price requirement during the second 180-day compliance period, by effecting a reverse stock split if necessary.  If a company does not provide written notice of its intent to cure the deficiency, or if it does not appear to Nasdaq that it is possible for the company to cure the deficiency, the company will not be eligible for the second compliance period.

A Nasdaq Global or Global Select Market company that is in the Hearings Process for the minimum $1.00 bid price requirement can submit a transfer application ONLY if it meets the continued listing requirement for market value of publicly held shares and all other initial listing criteria (except initial bid price) for the Capital Market. If the application is approved, the company's securities will be transferred to the Capital Market. The company will be granted the balance of the second 180-day compliance period to resolve its $1.00 bid price deficiency.
Publication Date*: 7/31/2012 Mailto Link Identification Number: 354
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