As 2022 and 2023 have continued to be extremely tough years for the capital markets many small cap companies find themselves failing to maintain the minimum continued listing requirements. I’ve recently written about those continued listing requirements, see HERE, and Nasdaq’s proposed rule changes for reverse split notifications as companies struggle to maintain the $1.00 minimum bid price requirement, see HERE.
These blogs provide a perfect segue for a deep dive into the Nasdaq deficiency notice and delisting process. In this first blog in the series, I provided an overview of deficiencies, deficiency notices, cure periods and compliance plans – see HERE. In this Part 2, I will review the hearing panel process followed by appeals and ultimately delisting.
Review of Deficiency Determinations by Hearing Panel
As noted in Part 1 of this series, Nasdaq deficiency notifications are one of four types:
- Staff delisting determinations, which are notifications of deficiencies that, unless appealed, subject the Company to