I am saying there is no way imo they go to NASDAQ with only a $10 M market cap. Isn't there a minimum you need to even qualify? I don't think they could even qualify for NASDAQ with only a $10 M MC.
So the share price has to go up. The actual RS itself will not change the MC.
Here are the requirements.
Standard No. 1: Earnings
Listing requirements for the Nasdaq start with looking at earnings. First, a company can’t have reported a net loss in any of the three previous years. Once established, Nasdaq requirements include an aggregate pre-tax earning amount of $11 million for the previous three years. The previous two years must include pre-tax earnings of $2.2 million a year.
If a company can’t meet that standard, says Schleif, the next step for a business is to see if it can meet the criteria in the second standard.
Standard No. 2: Capitalization With Cash Flow
Instead of earnings, a company can choose to apply for listing using cash flow in combination with capitalization. For example, if a business has an aggregate minimum cash flow of $27.5 million during the last three years, and no negative cash flow, that is acceptable, as long as the average market capitalization during the previous 12 months is at least $550 million. However, revenues during the last fiscal year must also be at least $110 million.
Standard No. 3: Capitalization With Revenue
If the cash flow requirement in the second standard is too much to meet, a company can make up for it with a higher capitalization. With this standard, if revenues over the last fiscal year are at least $90 million and the average market capitalization during this time period is at least $850 million, a company can still be listed.
Standard No. 4: Assets With Equity
Finally, if a business doesn’t meet cash flow or revenue requirements, it can still meet listing requirements for Nasdaq if it has assets and equity. The market capitalization requirement is $160 million — as long as total stockholder equity is $55 million and company assets total at least $80 million.
