…couver.
This can’t end well. Nasdaq recently got the regulatory green light from the SEC to launch its new BX Venture Market.
The idea here is that BX will serve as a new listing alternative for early stage and smaller companies – bringing the gap between the over-the counter market and Nasdaq.
Sounds dangerous huh? A bit like the old wild west Vancouver exchange, perhaps?
Well, the SEC twice delayed a decision on BX over the past year as it mulled issues such as the manipulation of less-liquid companies. Issues that could return to haunt the regulator and Nasdaq.
Here, via law firm Schulte Roth & Zabel, are a few of the eligibility criteria:
- 200,000 publicly held shares;
- 200 public shareholders, at least 100 of which must be round lot holders for initial listing, and 200 public shareholders for continued listing;
– A market value of listed securities of at least $2 million for initial listing and $1 million for continued listing;
– Two market makers; and
- A minimum initial listing price of $1.00 per share for securities not previously listed on a national securities exchange and $0.25 per share for securities previously listed on a national securities exchange at any time during the three months prior to listing on the BX Venture Market (or, in the case of a company that applies to list prior to Sept. 30, 2011, was listed at any time between Jan. 1, 2010 and Sept. 30, 2011); the listed security must maintain a minimum $0.25 per share bid price for continued listing.
- Additionally, companies that have not previously listed on a national securities exchange must have either $1 million in stockholders’ equity or $5 million in total assets, a one year operating history and a plan to maintain sufficient working capital for its planned business for at least 12 months after listing. In connection with listing, NASDAQ listings staff will conduct a public interest review of a candidate company’s listing application, which will include, among other things, a background check of the company and affiliated individuals and a review of the company’s proxy disclosures and other SEC filings.
BX will launch later this year.
And to think a senior SEC commissioner once likened London’s Aim market to a casino.
Oh, the irony.
(H/T Paul Murphy)