Saturday, August 17, 2019 3:54:00 PM
Each company must have a minimum of 1,250,000 publicly traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more than 10% of the company.
Also, the regular bid price at the time of listing must be $4.00, and there must be at least three market makers for the stock.
However, a company may qualify under a closing price alternative of $3.00 or $2.00 if the company meets varying requirements.
Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360.
Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.
In addition to these requirements, companies must meet all of the criteria under at least one of the following standards.
Standard No. 1: Earnings
The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the previous two years at least $2.2 million, and no single year in the prior three years can have a net loss.
Standard No. 2: Capitalization With Cash Flow
The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. Also, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.
Standard No. 3: Capitalization With Revenue
Companies can be removed from the cash flow requirement of the second standard if its average market capitalization over the past 12 months is at least $850 million and revenues over the prior fiscal year are at least $90 million.
Standard No. 4: Assets With Equity
Companies can eliminate the cash flow and revenue requirements, and decrease its marketing capitalization requirements to $160 million if their total assets total at least $80 million and their stockholders' equity is at least $55 million.
A company has four ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company. If a company does not meet certain criteria, such as the operating income minimum, it has to make it up with larger minimum amounts in another area, like revenue. This helps to improve the quality of companies listed on the exchange.
After a company gets listed on the market, it must maintain certain standards to continue trading. Failure to meet the specifications set out by the stock exchange will result in its delisting. Falling below the minimum required share price, or market capitalization is one of the major factors triggering a delisting. The exact details of delisting depend on the exchange.
Even after a 32-1 reverse split SHMP still would not qualify. They are going to need several years of profitability and growth first or they'll need to merge with a firm that meets the criteria.
Is it possible? Yes of course, but talk of up-listing anytime soon is just pumping. How about a successful harvest first with revenues. One step at a time.
Recent SHMP News
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 09:30:30 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/14/2024 09:31:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/09/2024 11:30:31 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/20/2023 09:56:11 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/14/2023 10:01:21 PM
- Form DEF 14C - Other definitive information statements • Edgar (US Regulatory) • 09/08/2023 03:52:31 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/18/2023 08:31:49 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 08/15/2023 04:15:19 AM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/14/2023 09:20:31 PM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 08/11/2023 08:52:47 PM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 08/07/2023 09:04:17 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/26/2023 09:20:28 PM
FEATURED Integrated Ventures Files Q3/2024 With Mining Revenues Of $1,983,250 And Positive Earnings Of $0.05 Cents Per Share • May 15, 2024 10:30 AM
Swifty Global Announces Impressive Financial Results for Q1 2024 • DRCR • May 15, 2024 10:25 AM
Branded Legacy Inc. Invites Shareholders to Celebrate Milestones at Open House: Announces Share Buyback and Commitment to Authorized Share Count • BLEG • May 15, 2024 8:30 AM
Alliance Creative Group (ACGX) Releases Q1 2024 Financial and Disclosure Report with an 88% increase in Net Income from Q1 2023 to Q1 2024 • ACGX • May 15, 2024 8:30 AM
Category V Biotech, Inc. Announces Letter of Intent to Acquire Genetic Networks, Expanding into Biotechnology Sector • CATV • May 15, 2024 8:00 AM
POET Announces Design Win and Collaboration with Foxconn Interconnect Technology for High-speed AI Systems • POET • May 14, 2024 10:09 AM