Spencer Feldman Quoted in Bloomberg Law on Nasdaq’s Proposed Rule to Speed Up Delisting Process for Companies Whose Shares Are Trading Under $1

Olshan Corporate partner Spencer Feldman was quoted in a Bloomberg Law article on the proposal by Nasdaq, spurred on by an investor and published August 19, that would hasten the delisting process for many companies whose shares are trading under $1, the exchange’s latest move to tighten its listing regulations. “This would appear to be investor versus company in a battle that the SEC needs to step in and stop,” Spencer said. The proposed rule change would suspend companies from trading during a review process if they haven’t met the $1 requirement for more than 360 days. Additionally, the exchange would immediately send a delisting notice to any company whose stock price falls under the $1 within one year of a so-called reverse stock split. “In the current financial environment,” Spencer explained, “this is a very harsh and very hard way to deal with companies whose prices have dropped.” This approach ignores other metrics concerning a company’s health, when its stock price is depressed for external reasons.