On Mar. 12, 2025, SEC issued amendment no. 1, order granting accelerated approval.
As revised, the company relying on OTA market alternative will be required to satisfy the applicable MVUPHS requirement with only the proceeds from the offering.
Exchange proposes to increase the size of the required public offering for alternative to the ADV Requirement from $4mn to $5mn for Nasdaq Capital Market applicants.
And $8mn for Nasdaq global market applicants to align with the minimum MVUPHS.
If company qualifies under a standard other than the income standard, the minimum raise instead will have to satisfy the MVUPHS requirement of the applicable standard.
The proposed changes will become operative 30 days after approval by the SEC.
On Dec. 12, Nasdaq proposed rule on initial list liquidity requirement.
Nasdaq proposed rule to modify certain initial listing liquidity requirements.
Require firm listing on Nasdaq in connection with IPO satisfy minimum market value of unrestricted publicly held shares (MVUPHS) requirement from proceeds of offering.
Also proposing to make similar changes affecting companies that uplist to Nasdaq from the US over-the-counter market (OTC market) in conjunction with a public offering.
Consultation
Comments must be submitted within 21 days of pending publication in federal register.
Dec. 19, 2024 SEC Proposal
On Dec. 19, 2024, SEC published notice of Nasdaq proposal, 21-day comment period.
Dec. 30, 2024 SEC Fed Reg Proposal
On Dec. 30, 2024, SEC published proposal in federal register, comment Jan. 21, 2025.
Feb. 11, 2025 SEC Longer Period
On Feb. 11, 2025, SEC designated a longer period to take action, until Mar. 30, 2025.
Feb. 18, 2025, SEC Fed Reg Publication
On Feb. 18, 2025, SEC published designation of longer period, in the federal register.
Mar. 12, 2025 SEC Amendment No. 1, Approval
On Mar. 12, 2025, SEC issued amendment no. 1, order granting accelerated approval.
As revised, the company relying on OTA market alternative will be required to satisfy the applicable MVUPHS requirement with only the proceeds from the offering.
Exchange proposes to increase the size of the required public offering for alternative to the ADV Requirement from $4mn to $5mn for Nasdaq Capital Market applicants.
And $8mn for Nasdaq global market applicants to align with the minimum MVUPHS.
If company qualifies under a standard other than the income standard, the minimum raise instead will have to satisfy the MVUPHS requirement of the applicable standard.
The proposed changes will become operative 30 days after approval by the SEC.
