Interesting re NASDAQ delisting suspension:
Nasdaq Takes Actions to Help Companies Remain Listed
Temporarily Suspends Minimum Bid Price and Public Float
Requirements for Continued Listing on Market
New York—In response to the extraordinary market conditions following the tragedy of
September 11th, The Nasdaq Stock Market, Inc. today announced that it was implementing an
across-the-board moratorium on the minimum bid and public float requirements for continued
listing on Nasdaq. The actions to suspend these requirements until January 2, 2002, were
approved late yesterday by the Nasdaq Board of Directors and became effective immediately.
Nasdaq rules have generally provided that companies whose securities fall below the minimum
bid price or fail to meet minimum market value of public float requirement for 30 consecutive
business days are given a 90 day grace period to regain compliance. A company may
demonstrate compliance by meeting the applicable standard for a minimum of 10 consecutive
business days. If a company fails to regain compliance within the applicable timeframe, that
company is subject to delisting. Nasdaq's new moratorium will suspend these requirements
until January 2, 2002.
Under the temporary relief provided by the new rules, companies will not be cited for bid price
or market value of public float deficiencies. Companies currently under review for deficiencies
or in the hearings process will be taken out of the process with respect to the bid price or
market value of public float requirements. No deficiencies will accrue during the proposed
suspension process. During this time, Nasdaq will consider whether it is appropriate to
recommend further and more permanent action.
"In the days following September 11th, we extended the grace period associated with these
requirements for affected companies on an individual basis," said Wick Simmons, chairman
and chief executive officer of Nasdaq. "Yesterday, we implemented a broader action that we
believe will provide greater stability to the marketplace during these times of economic
uncertainty."
The Nasdaq Stock Market® lists over 4,300 companies and trades more shares per day than
any other U.S. market. For more information about Nasdaq, visit the Nasdaq Web site at
www.nasdaq.com or the Nasdaq NewsroomSM at www.nasdaqnews.com.
