The Nasdaq seasoning rules, which were adopted in late 2011, prohibit a company that has completed a reverse merger with a public shell from applying to list until the combined entity had traded in the U.S. over-the-counter market, on another national securities exchange, or on a regulated foreign exchange, for at least one year following the filing of all required information about the reverse merger transaction, including audited financial statements. In addition, the rules require that the new reverse merger company has filed all of its required reports for the one-year period, including at least one annual report. In addition, the seasoning rule requires that the reverse merger company “maintain a closing stock price equal to the stock price requirement applicable to the initial listing standard under which the reverse merger company is qualifying to list for a sustained period of time, but in no event for less than 30 of the most recent 60 trading days prior to the filing of the initial listing application.” The rule includes an exception for companies that complete a firm commitment offering resulting in net proceeds of at least $40 million. I believe MindMed qualifies for the exception based on the last bought deal which exceeded USD $40M, which may have been additional incentive for them to move forward on that deal so quickly after the close of the prior bought deal. That being said, if Nasdaq is still requiring MindMed to meet the $2+ closing price for a period of 30 days, they first date that was mer was 12/07/20, which would mean Wednesday, January 20th would be the first date eligible for uplist. Again. Lots of uncertainty here as Nasdaq could waive all seasoning requirements on account of the recent bought deal. Nevertheless, this could be a reason for the delay.
-Wade (YahooFinance)
