Global Brokerage’s new listing requires market value of publicly held shares of at least $1 million
A minimum bid price of at least $1 per share and market value of publicly held shares of at least $1 million – these are among the requirements for Global Brokerage to remain listed on the Nasdaq Capital Market.
As per plans announced last night, Global Brokerage Inc (NASDAQ:GLBR) is about to transfer its stock to the Nasdaq Capital Market exchange, with the securities to commence trading at the opening of business on November 13, 2017.
Although the requirements to get listed and remain listed on the Nasdaq Capital Market are not as heavy as those for other exchanges, such requirements exist. In what follows, FinanceFeeds takes a brief look at the requirements for continued listing on the Nasdaq Capital Market, as these are the rules that Global Brokerage has to follow effective November 13, 2017.
A company that has its Primary Equity Security (a company’s first class of common stock, ordinary shares, etc) listed on the Nasdaq Capital Market must meet all of the following requirements:
- At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid;
- Minimum bid price of at least $1 per share;
- At least 300 public holders;
- At least 500,000 publicly held shares; and
- Market value of publicly held shares of at least $1 million.
In addition, such a company must meet at least one of the following Standards:
- Equity Standard: Stockholders’ equity of at least $2.5 million;
- Market Value of Listed Securities Standard: Market value of listed securities of at least $35 million; or
- Net Income Standard: Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.
Let’s not forget that these quantitative requirements do not exhaust the whole set of rules that Global Brokerage must comply with. There are also a number of qualitative requirements, such as rules relating to the company’s board of directors, including audit committees and Independent Director oversight of executive compensation and the director nomination process; code of conduct; shareholder meetings, including proxy solicitation and quorum; review of related party transactions; and shareholder approval, including voting rights.
How Global Brokerage will do with regard to the new requirements remains to be seen. Let’s recall that on May 2, 2017, Nasdaq informed Global Brokerage that during the prior 30 consecutive business days the market value of the company’s publicly held shares was less than $15 million. The value failed to satisfy the requirement for continued listing under The Nasdaq Global Select Market listing rules and this has ultimately led to the transfer of the listing.
