Nasdaq extend the temporary suspension of the bid price and market value of publicly held shares requirements

By Cydney Posner

Nasdaq has filed with the SEC a proposal to extend the temporary suspension of the bid price and market value of publicly held shares (MVPHS) requirements, currently scheduled to expire January 16, for an additional three months, until April 19, 2009. The proposed rule change is effective upon filing.

Under this extension, companies would not be cited for new deficiencies in $1 minimum bid price or MVPHS during the suspension period. In addition, the time allotted to companies already in a compliance period or in the hearings process for deficiencies in bid price or MVPHS would remain suspended with respect to those requirements. Following the temporary suspension, any new deficiencies with the bid price or MVPHS requirements would be determined using data starting on April 20, 2009.

Remember, the suspension applies only to the rules requiring a minimum $1 closing bid price and MVPHS. The suspension does not apply to other tests for continued Nasdaq listing. Specifically, it does not apply to the requirement under Nasdaq Global continued listing standard 1 for stockholders' equity of $10 million, nor does it apply to the requirement under standard 2 for either $50 million in market value of listed securities (MVLS) or total assets of $50 million and total revenue of $50 million. It appears that Nasdaq has continued to send deficiency notices relating to these other requirements.

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