Intellipharmaceutics International Inc. (IPCI)

[Samsa]

For what it is worth here is what I found;

5550. Continued Listing of Primary Equity Securities

A Company that has its Primary Equity Security listed on the Capital Marketmust continue to meet all of the requirements set forth in Rule 5550(a)and at least one of the Standards set forth in Rule 5550(b). Failure to meet any of the continued listing requirements will be processed in accordance with the provisions set forth in the Rule 5800 Series.

(a) Continued Listing Requirements for Primary Equity Securities:

(1) At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid;

(2) Minimum bid price of at least $1 per share;

(3) At least 300 Public Holders;

(4) At least 500,000 Publicly Held Shares; and

(5) Market Value of Publicly Held Shares of at least $1 million.

(b) Continued Listing Standards for Primary Equity Securities:

(1) Equity Standard: Stockholders' equity of at least $2.5 million;

(2) Market Value of Listed Securities Standard: Market Value of Listed Securities of at least $35 million; or

(3) Net Income Standard: Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.

Therefore, they MUST meet the $1 a share requirement because that is under subsecton A. However, they only need to meet ONE of the requirements under subsection B.

so They could do a R/S of say 10 to 1 to get above $1 but then they still need to meet shareholder equity or the market cap requirement.

so if its a dilutive measure, that would meet the shareholder equity HOWEVER that would not meet the requirement that the NASDAQ board imposed which was also "demonstrating its ability to maintain compliance with the stockholders' equity rule for the coming year. "
so a dilution after a R/S would not show how they are going to maintain the equity going forward.

something else is planned.