In light of the turmoil currently affecting the world securities markets, on Thursday, October 16, 2008, NASDAQ announced that it has temporarily suspended enforcement of its rules requiring listed companies to maintain a minimum bid price of $1.00 and a specified minimum market value of publicly held shares. The suspension applies to shares of common stock, as well as other securities, including preferred stock, American Depository Receipts and limited partnership interests.
This suspension will continue through Friday, January 16, 2009. During that time, NASDAQ will not take any action to delist companies that would otherwise fail to meet the minimum bid price requirement or the minimum market value of publicly held shares requirement. This suspension does not affect any other NASDAQ listing requirements, which will continue to be enforced.
The suspension will provide welcome relief to hundreds of NASDAQ-listed issuers suffering a temporary decline in stock price and market value. Issuers that had not triggered the delisting process for failure to meet either of these two requirements by October 16, 2008 will be reassessed for compliance using data starting on January 19, 2009. Issuers that had commenced the delisting process for failure to meet either requirement before October 16, 2008 will effectively receive a three-month extension of the delisting process. As a result, issuers will have additional time to achieve compliance.
NASDAQ has requested that the SEC waive the 30-day delay before the suspension becomes effective, and it is expected that the suspension will be effective immediately.