From Yahoo, shows MNKD closed at $1.00. Doesn't that restart the clock?
NASDAQ has tightened up the rules a bit. It needs to have a closing bid price of at least $1.00 for ten consecutive trading days to reset the clock. If the last trade was hitting a $1.00 ask but the bid was $0.99 then it doesn't count. Last trade may, or may not, have been on the bid.
What Is the Delisting Process for the NASDAQ?
Under what circumstances can a company be delisted from the NASDAQ, and what is the procedure?
Nasdaq
PHOTO: FLICKR USER JULIAN GONG MIN
Companies that want to list their stocks on the NASDAQ need to meet a pretty long list of continuing requirements. Just to name a few of them, listed companies are required to:
Maintain a share price over $1.00
Maintain a $1 million valuation for all publicly held shares
Have a minimum number of stockholders – as low as 300, but varies depending on the type of listing
Maintain a minimum amount of stockholder's equity or minimum market value of all listed securities or produce net income above a specified minimum
Distribute annual reports to shareholders
Have a majority of independent directors on the company's board
Have an audit committee consisting solely of independent directors
Adopt a code of conduct applicable to all directors, officers, and employees
Hold an annual meeting of shareholders
Disclose all "material news" – defined as information that would reasonably be expected to affect the stock's value or influence investors' decisions
Pay annual listing fees, which range from $32,000 to $155,000
If any of these, or any other published requirements of the NASDAQ, are not met for a period of 30 consecutive days, the exchange can start delisting procedures.
Deficiency notice
If a company is in violation of the continued listing standards for a period of 30 consecutive days, the NASDAQ sends a "deficiency notice." The most common reasons for a deficiency notice are a share price that falls below $1.00 or a market cap that falls below the stated minimum (as low as $5 million if other requirements are satisfied).
Once a deficiency notice has been sent, the company has 90 days to comply with the continued listing standards, or 180 days if the violation was for a sub-$1.00 share price. In order to be compliant, the company's share price or market cap must rise above the minimum for at least 10 consecutive days in the 90-day (or 180-day) period.
