Dell (DELL) got another delisting warning yesterday. It has to file its financials on time, or risk being thrown off the exchange. Dell has gotten a number of these. but Nasdaq (NDAQ) keeps pushing the decision off.
Even tiny companies like Peregrine Pharmaceuticals (PPHM) can’t get delisted. The company got a notice on July 15. The firm’s stock trades under $1. But, it has 180 days to get its shares back above that level. And, according to Nasdaq rules “If we (PPHM) are still not in compliance with the minimum closing bid price requirement after the initial 180 calendar day period but we are in compliance with all initial listing requirements other than the bid requirement, we will be afforded an additional “compliance period” of 180 calendar days within which to regain compliance.”
If nothing else works, a company can do a reverse merger to get is price above $1.
Of course, Nasdaq does not want to lose any of these companies. They pay listing fees. And, how would it look if the exchange pushed out a big firm like Dell. If it did, it might have to delist all of those other firms that are not obeying the rules.
Nasdaq’s listing requirements are a joke
Douglas A. McIntyre