Ann: Notification under Listing Rule 7.20 of share reorganisation, page-189

Penny Stocks..

US companies have a very different view of price levels.. As a matter of fact, Australian Funds used to be the same and not want to touch anything below $1. I think they have lightened up a bit but still you find many of the larger ones not touching anything below the $AU1

If you take ASX, Penny stocks / min listing price is 20c
Nasdaq is $US4 and you need to have a bid price stay above $US1 to stay in compliance to Nasdaq listing rules.
Similarly NYSE is US$4 at listing and bid price needs to stay above US$1 to stay listed on NYSE.

So if you think about how funds might think about stocks rated below 20c when the read the listing rules of NYSE & NASDAQ you can understand their reluctance to touch a sub 20c stock when they consider a $US4 stock a penny stock..