As reported in an earlier alert, in April 2020, Nasdaq proposed, and the SEC approved, a rule enabling the delisting of securities with a closing bid price below $0.10 for 10 consecutive trading days or securities that have undergone reverse splits with a cumulative ratio of 1:250 during the preceding two years. However, the SEC has now approved another rule change that would delay the effectiveness of the earlier rule until September 2020.
If you have any questions, please contact Gunster securities law and corporate governance practice leader Bob Lamm. For more information on SEC actions relating to COVID-19, please see Gunster’s COVID-19 Resources and Insights Page.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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