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1 Apr 2009

NASDAQ extends suspension of listing requirements


Corporate Governance Alert


Andrew D. Ledbetter
Given the continued extraordinary market conditions, Nasdaq has extended its prior suspension of the following continued listing requirements through Sunday, July 19, 2009:

  • $1 Minimum Closing Bid Price
  • Minimum Market Value of Publicly Held Shares

Nasdaq previously suspended these continued listing requirements from October 16, 2008 through April 19, 2009. In its filing with the SEC to extend this suspension through July 19, 2009, Nasdaq noted that market conditions have not improved and that the number of securities trading below $1, and between $1 and $2, on Nasdaq has increased since the initial suspension. Nasdaq expressed its continued belief that "there was no fundamental change in the underlying business model or prospects for many of these companies, and that a decline in general investor confidence has resulted in depressed pricing for companies that otherwise remain suitable for listing."

Suspension of these two continued listing requirements means that issuers will not be cited for new deficiencies under these requirements and, with respect to prior deficiencies, companies will remain at the stage in any compliance period or hearings process that such companies were in as of October 16, 2008. Enforcement of these continued listing requirements and the time allowed under compliance periods and hearings processes for prior deficiencies are scheduled to resume on Monday, July 20, 2009.

Issuers should note that they remain subject to delisting for failure to satisfy any other listing requirements.

This information is intended as a general overview and discussion of the subjects dealt with. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.

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