Depending on the types of securities listed and the size of the company, a filing fee of $5,000 to $25,000 may be required. Companies must also pay fees based on the amount of shares issued, which can range from $100,000 to $150,000. There are also several other fees, depending on the type of company, including an annual registration fee, a small cap fee for smaller companies, and fees for additional services or changes such as registrations and additional shares issued. For at least 30 days prior to the filing of the application, the reverse merger corporation must also maintain its closing price, which is the same as the original listing standard that applied to the corporation`s share price. An exception is for companies with firm commitments with net proceeds of at least $40 million. In addition to the above requirements, financial standards must be met based on the type of security listed as described below. Depending on the market your company wants to qualify for and the type of security your company wants to spend, different listing fees apply. Any publicly traded company must comply with the U.S. Securities and Exchange Commission (SEC) market rules for listings on Nasdaq, including Corporate Governance Rules 4350, 4351, and 4360. Companies attempting to qualify for the NASDAQ Global Select Market initial listing standards must also meet the following liquidity requirements: The normal offering price of the Company`s shares at the time of listing must be at least $4.00. However, a company may be eligible for a closing price alternative of $3.00 or $2.00 if the company meets different requirements. As a general rule, there must be at least three (or four, depending on the criteria) market makers for the security.
Once a company is listed on the market, it must meet certain standards in order to continue to operate. Failure to comply with the specifications set by the exchange results in the dekot of the exchange. Falling below the required minimum share price or market capitalization is one of the main factors triggering a delisting. The exact details of a delisting depend on the exchange. On May 31, 2022, the Company filed a Form 6-K (the “Filing”) with the SEC, including unaudited financial statements and a reference to receipt of proceeds from the sale of the Company`s common stock to certain investors in May 2022. On an adjusted basis, the Company`s pro forma balance sheet as at May 31, 2022 had shareholders` equity of $7,442,000. In addition, the Company stated in the filing that it is meeting the minimum principal amount of $2.5 million required to continue listing on the Nasdaq Capital Market on the closing date. Accordingly, the Company has satisfied the conditions of the Committee`s decision dated May 4, 2022. The National Association of Securities Dealers Automated Quotations (NASDAQ) is a national securities exchange that ranks second only to the NYSE in terms of market capitalization and maintains its own listing requirements for each of its levels. NASDAQ as an organization was founded in 1971 and received SEC recognition in 2006. With its constituent companies with a combined market capitalization of over $8.5 trillion, the NASDAQ is the preferred market for technology and biotech stocks.
The exchange is known for the highly volatile trades that take place in its electronic market. NASDAQ normal trading hours are between 9:30 a.m. and 4:00 p.m. Eastern Time, with pre-trade trading from 4:00 a.m. to 9:30 a.m. and post-trade session from 4:00 p.m. to 8:00 p.m. Eastern Time. To be listed on the NASDAQ Exchange and Reporting System, the following requirements apply: Depending on a company`s situation, there are 12 different applications for listing on NASDAQ that cover situations where a change of control has occurred, a company has completed an IPO, etc. Companies wishing to list their securities on NASDAQ must meet certain requirements, including quantitative and qualitative requirements, as well as additional requirements that must be met throughout the listing period of the security. Companies must also adhere to corporate governance standards.
The NASDAQ is divided into three distinct tiers, each with its own listing requirements: Companies must have at least 1,250,000 publicly traded shares outstanding at the time of listing, excluding those held by officers, directors or beneficial owners of more than 10% of the company.