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.
