Can anyone verify this?

Can anyone verify this? This has been circulating around on the internet chat rooms, but I can't find a link to verify if this is true or not...

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Nasdaq implements 90-day suspension on min bid & min mkt cap
Effective immediately, NASDAQ has suspended the enforcement of the
rules requiring a minimum $1 closing bid price.
Effective immediately, NASDAQ has also suspended the enforcement of
the rules requiring a minimum market value of publicly held shares
(MVPHS).
NASDAQ will not take any action to delist any security for these
concerns during the suspension.
The suspension will remain in effect through Friday, January 16, 2009.
These rules will be reinstated on Monday, January 19, 2009.
—————————————————– —————————
Given the current extraordinary market conditions, NASDAQ has
determined to suspend the bid price and market value of publicly held
shares requirements through Friday, January 16, 2009. In that regard,
on October 16, 2008, NASDAQ filed an immediately effective rule change
with the Securities and Exchange Commission, such that companies will
not be cited for any new concerns related to bid price or market value
of publicly held shares deficiencies. These rules will be reinstated
on Monday, January 19, 2009.
As a result of the suspension, all companies presently in the
compliance process will remain at that same stage of the process.
However, if such a company is presently subject to being delisted for
concerns not related to the bid price or market value of publicly held
shares requirements, it will continue in that process with respect to
those other concerns. Over the next few days, NASDAQ staff will
contact each company affected by this suspension to discuss the
specific impact to the company. NASDAQ will continue to monitor
companies to determine if they regain compliance with these
requirements during the suspension.
NASDAQ believes that this temporary suspension will allow companies to
focus on running their businesses, rather than satisfying market-based
requirements that are largely beyond their control in the current
environment. Moreover, this temporary suspension should help to
restore investor confidence in affected NASDAQ companies as the
suspension will allow investors to make decisions without considering
the likelihood of a very near-term delisting. In the coming months,
NASDAQ will continue to monitor the affect that market conditions are
having on the operation of our rules.
For more detailed information, please see the following internet
links:
NASDAQ Rule Providing Temporary Suspension
NASDAQ Stock Market Rules
If you have any questions, please contact your NASDAQ Listing
Qualifications Analyst or your NASDAQ Relationship Manager.

Demian, it is an SEC filing made by NASDAQ... here are snipets...


Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),1 and Rule 19b-4 thereunder,2 notice is hereby given that on October 16, 2008, The NASDAQ Stock Market LLC (“Nasdaq”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III below, which Items have been substantially prepared by Nasdaq. Nasdaq has designated the proposed rule change as effecting a change described under Rule 19b-4(f)(6) under the Act,3 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

Nasdaq proposes to temporarily suspend, through January 16, 2009, the application of the continued listing requirements related to bid price and market value of publicly held shares.

In the past several weeks, U.S. and world financial markets have faced almost
unprecedented turmoil, and the Commission has acknowledged in several recent emergency Orders that this turmoil has resulted in a crisis in investor confidence and concerns about the proper functioning of the securities markets.6 As a result, the number of securities trading below $1 has increased dramatically. For example, as of September 30, 2007, there were 64 securities trading below $1 on Nasdaq. By September 30, 2008, that number had increased to 227 and by October 9, 2008, there were 344 securities trading below $1 on Nasdaq and over another 300 Nasdaq-listed securities trading between $1 and $2. Nasdaq believes that during this time there was no fundamental change in the underlying business model or prospects for many of these companies, but the decline in general investor confidence has resulted in depressed pricing for companies that otherwise remain suitable for continued listing. These same conditions make it difficult for companies to successfully implement a plan to regain compliance with the price or market value of publicly held shares tests.

Given these extraordinary market conditions, Nasdaq has determined that the bid price and market value of publicly held shares requirements should be temporarily suspended through January 16, 2009. Under this proposal, companies would not be cited for new bid price or market value of publicly held shares deficiencies during the suspension period, and the time allowed to companies already in a compliance period or in the hearings process for bid price or market value of publicly held shares deficiencies would be suspended with respect to those requirements. Following the temporary suspension, any new deficiencies with the bid price or market value of publicly held shares requirements would be determined using data starting on January 19, 2009. Companies that were in a compliance period prior to the suspension would receive the balance of any pending compliance periods in effect at the time of the suspension.

Similarly, companies that were in the Hearings process prior to the suspension would resume in that process at the same stage they were in when the suspension went into effect. Nasdaq will continue to monitor securities to determine if they regain compliance during the temporary suspension. Nasdaq believes that this temporary suspension will permit companies to focus on running their businesses, rather than satisfying market-based requirements that are largely beyond their control in the current environment. Moreover, this temporary suspension would allow investors to buy shares of some of these lower-priced securities without fear that the company will receive a delisting notification or be delisted in the very near term. During the temporary suspension, Nasdaq will consider whether it is appropriate to propose further revisions to these requirements.

Nasdaq has requested that the Commission waive the 30-day operative delay period consistent with the protection of investors and the public interest, in order to provide companies immediate relief, given current extraordinary market conditions. Absent such a waiver, the potential benefits of the proposed rule change would be lost to companies already trading below the requirements, which could receive a deficiency or delisting notification, or be delisted, under the existing rules. In light of the foregoing, the Commission believes that waiver of the 30-day operative delay period is consistent with the protection of investors and the public interest. Accordingly, the Commission has determined to waive the operative delay, and the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act, and Rule 19b-4(f)(6) thereunder, with no operative delay.


Download the PDF here:
http://www.4shared.com/file/67352010...-2008-082.html


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Thanks Homer,

Homer to the rescue! Why hasn't there been any news stories about this other than Tyler's on SIRIUSBUZZ? How did you find out about this? Where did you get the PDF? I'm just amazed that there has not been any news flow regarding this. Is it a done deal or does the SEC have to approve this?

Thanks for everything Homer...

I did a search on the NASDAQ site when I was tipped off about it -- and found it in one of their filings sections...

Here it is...
http://www.cchwallstreet.com/NASDAQT...q%2Dfilings%2F

Ferreting out data like this has always been one of my strong points over the years -- and no, no one at XM or Sirius tipped me off or gave me the info. I just dug it out on my own.


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Thank you so much Homer!

You the man!

Please pass that rule change!

wow, how did you find that? i went back one page and couldn't find it again

oh there it is under rule filings, 2008

I heard this was a maybe last week.

Quote:

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Originally Posted by hartleib1

I heard this was a maybe last week.

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It was effective immediately and passed by the Commission already. This was stated in the filing. There is no maybe -- it's effective already.


"Nasdaq has requested that the Commission waive the 30-day operative delay period consistent with the protection of investors and the public interest, in order to provide companies immediate relief, given current extraordinary market conditions. Absent such a waiver, the potential benefits of the proposed rule change would be lost to companies already trading below the requirements, which could receive a deficiency or delisting notification, or be delisted, under the existing rules. In light of the foregoing, the Commission believes that waiver of the 30-day operative delay period is consistent with the protection of investors and the public interest. Accordingly, the Commission has determined to waive the operative delay, and the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act, and Rule 19b-4(f)(6) thereunder, with no operative delay."



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ok, so that nearly eliminates the need for the reverse split then. The dilution is still a possiblity if needed to raise money for the converts.

Any thoughts on how this takes the RS off the table?

Is there a time limit on this reprieve or is it open ended? It is a big change, you would think it would get more press.I have always thought that the size of the Market Cap should make a difference.

Quote:

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Originally Posted by hartleib1

Is there a time limit on this reprieve or is it open ended?

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Here is your answer.......January 19th, 2009.


"Given these extraordinary market conditions, Nasdaq has determined that the bid price and market value of publicly held shares requirements should be temporarily suspended through January 16, 2009. Under this proposal, companies would not be cited for new bid price or market value of publicly held shares deficiencies during the suspension period, and the time allowed to companies already in a compliance period or in the hearings process for bid price or market value of publicly held shares deficiencies would be suspended with respect to those requirements. Following the temporary suspension, any new deficiencies with the bid price or market value of publicly held shares requirements would be determined using data starting on January 19, 2009. Companies that were in a compliance period prior to the suspension would receive the balance of any pending compliance periods in effect at the time of the suspension."

If the market/economy is as bad as some claim -- don't be surprised to see this extended beyond 1/19/09. It all comes down to the number of companies that are below the $1 threshold.

They made a point of bringing up the number of companies that are below $1 -- if that number is higher on 1/19/09 and things haven't gotten better... then don't be surprised to see it extended another 90 days.


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The Nasdaq has done this before, so it is not without precedence. The Nasdaq suspended the delisting process after the 9/11 attacks for example. It is bad for business for the Nasdaq to start delisting companies, as they are having a hard time getting any new listings in this economic environment...