What could happen at the NASDAQ Panel Hearing?
The panel, once convened on the hearing date, will assess the deficiencies that AMDA needs to satisfy in order to keep its listing on NASDAQ. Two deficiencies are present:
- bid price below minimum requirement, and
- not current with quarterly/annual filings to the SEC
Hearing scenarios, IMO:
- if the R/S vote passes, AMDA will present that as a means to satisfy the first deficiency. The panel may then provide a new window of time for AMDA to execute on the R/S. If the second deficiency hasn't been satisfied at the time of the hearing, the panel may roll that deficiency's deadline into the new extension that may be granted.
- if the R/S vote does not pass, AMDA will need to provide some other remedy to satisfy the first deficiency. They could propose another special meeting to vote on a R/S (feasible, but not supported historically). If the panel accepted that option, an extension would be granted to accommodate the vote and the ensuing assessment of the results. The approach for addressing the second deficiency could be the same as what I cited in the first scenario.
- if AMDA is unable to provide a remedy to satisfy either requirement, their appeal would most likely be rejected. At that point, AMDA would have 15 days to appeal to either the SEC or a federal court. During that 15 day period, NASDAQ would begin the delisting procedure.
Of course, if AMDA meets the bid requirement (over $1 for ten consecutive trading days) and files last year's 10-K and this year's 10-Qs prior to the hearing, both deficiencies would be remedied and no delisting would take place. The hearing would therefore not be required.
