Reed Smith Client Alerts

On April 16, 2020, the Nasdaq Stock Market LLC (Nasdaq) filed with the Securities and Exchange Commission (SEC) a proposal to temporarily toll the period of time companies have to regain compliance with the minimum share price and market value of publicly held shares continued listing requirements by tolling the compliance periods through and including June 30, 2020. The proposed change is designed to respond to the unprecedented uncertainty and resulting market declines related to the global spread of the COVID-19 virus.

Authors: Michael S. Lee Danielle Carbone Gerard S. DiFiore Wendy A. Grasso Aron Izower Tadashi Okamoto Katherine E. Geddes

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Continued listing requirements

The Nasdaq continued listing requirements require companies to, among other things, maintain a minimum share price1 and market value of publicly held shares2 (together, the Price-Based Requirements). If a listed company fails to meet either of these requirements for a period of 30 consecutive business days, Nasdaq will send a deficiency notice to the listed company, advising that the company has been afforded a compliance period of 180 calendar days to regain compliance with the applicable requirements.