The Nasdaq Capital Market listing fee is based on the total number of shares outstanding at the time of initial listing, plus a $5,000 listing fee, which is non-refundable. For all companies, some of the general registration requirements for an IPO include: Depending on the types of securities listed and the size of the company, a filing fee of $5,000 to $25,000 may be charged. 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. The capital market stage is important because investors use it to assess the size of a company. Overall, she advises the company and investors on companies that are part of the first stage of the Nasdaq Composite Index, which includes companies with smaller market capitalizations. To be listed on the Nasdaq Capital Market, the zone for those with a lower capitalization, a company must have three market makers. It must hold at least 1 million unrestricted shares and at least 300 shareholders of unrestricted round lots. The offer price for these shares must be $4 or, in certain circumstances, have a closing price between $2 and $3. Each publicly traded company must comply with the market rules of the U.S.
Securities and Exchange Commission (SEC) for listings on Nasdaq, including Corporate Governance Rules 4350, 4351 and 4360. 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. To remain listed on Nasdaq, a company must continue to meet minimum listing requirements or risk being delisted and delisted from the Nasdaq exchange. Note: Whether as part of the regular financial guidelines or the alternative financing guidelines, there are other additional requirements in terms of free float, number of shareholders and average daily trading volume. It is important to note that even if a company meets all the requirements, Nasdaq may refuse the initial listing or apply certain conditions. If you compare the capital market criteria with the other two levels of the composite index, you will find that the numbers are lower and less stringent. (d) the ordinary equity security for which the subscription form may be exchanged must remain listed on Nasdaq and must not have been the subject of a staff delisting decision in respect of the security for which such subscription form may be exchanged; and An entity whose principal equity is listed on the capital market must continue to meet all the requirements of Rule 5550(a) and at least one of the standards set forth in Rule 5550(b). Failure to comply with any of the conditions required for continued registration will be dealt with in accordance with the provisions of the 5800 series. (b) at the time the subscription receipts are registered, the issuer must not have received a delisting from employees in respect of the security for which the subscription form may be exchanged and must not have received a default in a maintenance of listing standard in respect of the issuer of the security or security for which the subscription certificate may be exchanged; have been informed. except in respect of a corporate governance requirement where the issuer of the subscription document has been granted a grace period in accordance with Rule 5810(c)(3)(E). The Nasdaq has four groups of listing requirements.
Every company must meet at least one of the four sets of requirements as well as the most important rules for all companies. (1) If the Company`s security has recently been traded on a private placement market, Nasdaq will assign to the Company a price, the market value of the listed securities and the market value of the unrestricted public shares equal to the lesser of: (i) the value that can be calculated based on a valuation as defined in Registration Rule IM-5315-1; that meets the requirements of IM-5315-1(e) and (f), and (ii) the value that can be calculated based on the last transaction. Price in a private placement market. Companies must therefore ensure that they can meet the requirements for listing on the Nasdaq in subsequent years, as joining an exchange requires more than just a one-time fee. For investors, annual fees and listing requirements are a kind of protection that ensures companies can`t just get in and out of the stock market on a whim. Finally, if a company fails to meet cash flow or income requirements, it can still meet Nasdaq listing requirements if it has assets and equity. The required market capitalization is $160 million – provided total equity is $55 million and the company`s assets are at least $80 million. Let`s take a look at the Nasdaq listing requirements on this popular exchange.
To be listed on the Global Select Market, the large-cap division of Nasdaq, a company must hold at least 1.25 million unrestricted public shares with an offering price of at least $4. It must meet one of the following shareholder requirements: In terms of funding and liquidity, there are three different standards that companies can follow, but they must meet the criteria of at least one. Some of the requirements include equity of at least $4 million to $5 million and unrestricted public shares of $1 million. In addition to the more specific criteria, companies also need an average daily minimum volume of 2,000 shares, and they must be more than 30 trading days before listing. • The Nasdaq Capital Market (small cap) To be listed on the NASDAQ stock exchange and reporting system, the following requirements apply: (b) If the Company`s primary equity security is not listed on the capital market or is not a hedged security, the preferred shares and/or secondary ordinary shares may be listed on the capital market provided they meet the generally established criteria for initial listing. primary actions. 5505. (b) A convertible bond must meet the following requirements to be listed later: This section sets out the initial and continuous listing requirements and the standards for listing a company`s primary equity security on the Nasdaq Capital Market. This section also contains requirements for the initial admission and continued listing of preferred and secondary classes of common shares; convertible bonds, rights and warrants; and capital market subscription forms. A follow-on stock investment share may be registered as a primary equity security or as a secondary class of common shares, provided it also meets the initial and continuing listing requirements set out in Rule 5222. Since Nasdaq Capital Market companies are the smallest companies with market capitalization, the listing requirements are not as stringent as the larger companies at the other two levels – Global Market and Global Select Market. The other two levels include mid- and large-cap companies in the Nasdaq Composite Index.
In addition, registration requirements also vary depending on whether the company is conducting an IPO, whether it is a spin-off company, or an experienced company currently trading in common shares. (a) In determining whether such an entity satisfies the initial listing requirements on the Nasdaq Capital Market based on the price of a security, including the offer price, the market value of the listed securities, and the market value of the unrestricted public shares, Nasdaq shall determine the price of the security as follows: An entity requesting the listing of its primary equity security on the capital market; must meet all the requirements set out in Rule 5505(a) and at least one of the standards of Rule 5505(b). (a) Penny stock regulations. Rule 5505(a)(1)(B) provides for another initial listing for certain companies with a minimum offer price of less than $4. A company that qualifies for initial listing only under this option could become a “penny stock” if it subsequently fails the physical asset and post-listing income tests and does not meet any of the other penny share exemptions contained in Rule 3a51-1 of the Act. To assist dealers and dealers in complying with the requirements of the Penny Stock Rules, Nasdaq monitors companies listed under the alternative requirement and publishes daily on its website a list of all companies originally listed under the alternative requirement that no longer meet the net tangible assets or income test contained in Rule 5505(a)(1)(B). and does not satisfy any of the other penny stock exclusions contained in Rule 3a51-1 of the Act. If a company initially trades at a bid price of less than $4 pursuant to the alternative requirement of Rule 5505(a)(1)(B), but subsequently closes at $4 for at least five consecutive business days while meeting all other initial listing criteria, it will no longer be deemed to be listed under the alternative requirement and Nasdaq will inform the Company that: that he is entitled to a quote lower than the price. Requirement of Rule 5505(a)(1)(A).