The SEC has approved the recent NASDAQ rule change to lower the minimum bid listing requirement from $4.00 to either $2.00 or $3.00 depending on qualification for certain other listing requirements. The text of the entire new rule is available on the SEC website.
Pursuant to the new rule, a security would qualify for listing on the NASDAQ Capital Market if, for at least five consecutive business days prior to approval, the security has a minimum closing price of:
A. At least $3 per share, if the issuer meets either of the following standards determined as follows:
I. Under the Equity Standard, the Issuer would need to meet, among other things:
(i) stockholders’ equity of at least $5 million;
(ii) market value of publicly held shares of at least $15 million; and
(iii) two year operating history.
II. Under the Net Income Standard, the Issuer would have to meet, among other things:
(i) net income from continuing operations