Pryor Cashman attorneys Eric Hellige and Will Rao recently authored an article in Bloomberg Law around the impact that the newest Nasdaq changes have had on the marketplace. Specifically, the changes will impact those smaller companies that are looking to list on Nasdaq through (i) uplisting, (ii) reverse merger or (iii) a small IPO.
Under the new standards, in determining an issuer's Nasdaq eligibility, Nasdaq now:
1. Excludes "Restricted Securities" from calculations of an issuer's public float, market value of public float and round lot holders;
2. Requires that at least 50% of an issuer's round lot holders hold unrestricted securities with a market value of at least $2,500; and
3. Requires a minimum average daily trading volume for securities trading over-the-counter (OTC) of at least 2,000 shares during the 30 trading days prior to listing (with trading occurring on more than half of those 30 days).
The full article is available here.
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