"
asdaq
stated in its letter that, in accordance with Marketplace Rule
5810(c)(3)(C), the Company has been provided a grace period of 180
calendar days, or until January 31, 2011, to regain compliance.
During this period, compliance will be regained if the Company's
MVLS closes at $50,000,000 or more for a minimum of 10 consecutive
business days or the Company reports stockholders' equity of
$10,000,000 or more. "
Could this mean that ACAD still has potential to go up since it
has 39.3 million shares outstanding?
And also, what damage would t cause to a company when it
wouldn't be able to meet the regulations as described. Does it harm
a company if it will be kicked out NASDAQ?
Posted by racerick on 22nd of Dec 2010 at 04:32 am
Means just what it says. Company has until stated time to get
market value back up to approx. 1.28/share for a period of at least
10 days or raises enough equity.
Use to be kiss of death to get sent to 'pink sheets', but since
Sarbannes Oxley, lot of companies trade there and their marketplace
is electronic, so other than a little prestige, and sometimes a
small loss of liquidity no real damage done. A ton of good quality
companies trade there including tons of bank stocks and some major
stocks too. Nestle use to trade there, don't know if they still do
but there are a lot of serious companies that do.
A lot of companies don't want to spend the money and do the
requirements that listing requires. Generally, financial reporting
requirements a lot less strenuous so you get a lot of POS
companies too. So you have to be little more diligent when
you're trading stocks on there.
ACAD - Shares outstanding?
Posted by attila on 22nd of Dec 2010 at 03:54 am
Is there anybody that could explain to me what they try to say with this rule?
http://biz.yahoo.com/e/100805/acad8-k.html
" asdaq stated in its letter that, in accordance with Marketplace Rule 5810(c)(3)(C), the Company has been provided a grace period of 180 calendar days, or until January 31, 2011, to regain compliance. During this period, compliance will be regained if the Company's MVLS closes at $50,000,000 or more for a minimum of 10 consecutive business days or the Company reports stockholders' equity of $10,000,000 or more. "
Could this mean that ACAD still has potential to go up since it has 39.3 million shares outstanding?
And also, what damage would t cause to a company when it wouldn't be able to meet the regulations as described. Does it harm a company if it will be kicked out NASDAQ?
Thanks.
ACAD
Posted by racerick on 22nd of Dec 2010 at 04:32 am
Means just what it says. Company has until stated time to get market value back up to approx. 1.28/share for a period of at least 10 days or raises enough equity.
Use to be kiss of death to get sent to 'pink sheets', but since Sarbannes Oxley, lot of companies trade there and their marketplace is electronic, so other than a little prestige, and sometimes a small loss of liquidity no real damage done. A ton of good quality companies trade there including tons of bank stocks and some major stocks too. Nestle use to trade there, don't know if they still do but there are a lot of serious companies that do.
A lot of companies don't want to spend the money and do the requirements that listing requires. Generally, financial reporting requirements a lot less strenuous so you get a lot of POS companies too. So you have to be little more diligent when you're trading stocks on there.
Thanks for explaining.
Posted by attila on 22nd of Dec 2010 at 05:36 am
Thanks for explaining.