CV Sciences Inc (CVSI)

[Sunblazers]

Informative!
https://listingcenter.nasdaq.com/assets/initialguide.pdf

Listing Timeline
While it generally takes four to six weeks to process a listing application, this time frame is variable and may be shortened
considerably, if the application raises no issues and the company responds quickly to Staff comments.
Week 1. Company submits application for listing and Nasdaq Listing Qualifications Staff begins its review.
Weeks 2-3. Staff completes its preliminary review and prepares comment letter.
Weeks 3-4. Company addresses any issues raised by Staff.
Weeks 5-6. Staff completes their review and company is approved for listing.
"Now as a NASDAQ-listed company, our ability to communicate our progress with a broader audience, raise the visibility of our M&A strategy, and generate more value for our shareholders will improve dramatically."

With that in mind and while there is a whole section of the NASDAQ website dedicated to listing requirements with a short guide here, here are a few key points for retail investors to be aware of:

Criteria. Uplisting companies must meet all of the criteria under at least one of the four financial standards plus applicable liquidity requirements. The four financial standards are the following:

Standard 1: Earnings
Standard 2: Capitalization with Cash Flow
Standard 3: Capitalization with Revenue
Standard 4: Assets with Equity
The liquidity requirements fall under the following criteria:

Initial Public Offerings and Spin-Off Companies
Seasoned Companies: Currently Trading Common Stock or Equivalents
Affiliated Companies
Listing Rule
Required Share Price. The required share price to uplist to the NASDAQ is $4 and this share price is determined by the bid price rather than the closing price. The bid price will more accurately reflect demand for the stock and unlike the closing price, which can be influenced by a single trade, its harder to manipulate. However, uplisting companies can also qualify under the closing price alternative if it meets the following requirements (in addition to satisfying the other financial and liquidity requirements):

Average annual revenues of $6 million for three years, or
Net tangible assets of $5 million, or
Net tangible assets of $2 million and a 3 year operating history.
Reverse Splits. In order to meet NASDAQ’s minimum share price requirements, many small cap stocks will conduct a reverse split with the post reverse split share price being the price the stock exchange will consider. Its important to remember that reverse splits are actually a sign of good things for companies on the way up, but tend to be a sign of bad things for companies on the way down. For example: Reverse splits tend to be associated with stocks trying to prevent themselves from being delisted from a stock exchange.


It should be kept in mind that an uplisting application to the NASDAQ does not automatically mean the application will be approved and the process for a decision can come fairly quickly or take several weeks or months.

Moreover, investors need to remember that while NASDAQ may be a stock exchange, its also a business. After all, stock exchanges like the NYSE, AMEX and NASDAQ all charge substantial listing fees to companies for listing on their exchanges and all want to maximize revenue. They are also competing with each other to attract high quality small cap stocks with potential