Nasdaq Rule 5550(a) (2), states that companies must maintain a minimum bid price of at least US$1.00 (A$1.52) per share to remain listed on Nasdaq.
If a company’s bid price drops below US$1.00 for 30 consecutive trading days, it is considered noncompliant with the minimum bid price requirement. To regain compliance, the company must maintain a bid price of US$1.00 or more for ten consecutive trading days (or longer, at Nasdaq’s discretion). But delisting non-compliant companies can drag on for a long time.
The Nasdaq is currently proposing a tightening of the rules to accelerate the delisting process for companies with shares trading below US$1.00. Under the proposal, a company would be suspended from trading if the company fails to meet the US$1.00 bid price requirement for more than 360 days.
PYC Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
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