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  Listing Council Decision 2003-2
Identification Number 678
Rules 4450(a)(3) and 4450(b)(1): $10,000,000 shareholders' equity, or its alternatives, $50,000,000 market value of listed securities or $50,000,000 total assets and $50,000,000 total revenue requirements, for continued listing on the National Market.
Rule 4450(f): NASDAQ may suspend or terminate an issuer's securities if the issuer files under any of the sections of the Bankruptcy Act, unless it is determined that the public interest and the protection of investors would be served by continued designation.
Issue: The company no longer satisfied the shareholders' equity requirement for the National Market. The company had filed a voluntary bankruptcy petition and reflected a shareholders' deficit for approximately one year. At the time of the Panel's decision, it was uncertain whether the company would conclude its restructuring proceedings in the near term.
Determination: The Panel's determination to delist the company's securities from The NASDAQ Stock Market was appropriate at the time of the decision. Based on events occurring after the Panel's decision, the Panel's decision was reversed. The company provided evidence that it consummated its restructuring process and emerged from the bankruptcy proceedings. Under Listing Rule 4330(e), a security that has been terminated from NASDAQ must meet the initial listing requirements before re-inclusion. Following its restructuring, the company did not meet the National Market initial listing requirements, but did meet all of the SmallCap Market initial listing requirements, except for the $4 minimum bid price. However, because the company was below the $1 minimum bid price requirement for continued listing on the National Market for approximately three months, it was still within the 90-day grace period afforded to National Market issuers, as set forth in Listing Rule 4450(e)(2). Accordingly, the Listing Council waived the $4 bid price requirement for initial listing on the SmallCap Market and instead required that the company meet the $1 continued listing bid price requirement. The matter was remanded to the Panel with instruction to relist the company's securities on the SmallCap Market, effective upon the completion of Staff's review of the company's application. This process requires the company  to: (1) file an application for new listing, (2) pay all applicable listing fees, and (3) evidence compliance with all requirements for initial listing on the SmallCap Market, except that the company must demonstrate a minimum bid price of $1 instead of $4. Furthermore, at the time of Staff's review of the application, there must be no adverse developments or public interest reasons justifying denial of listing.
Publication Date*: 7/31/2012 Mailto Link Identification Number: 678
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