You may have seen this already, but here's the news on the Jan 29 SEC approval to extend compliance periods for companies like SIRI..
Let's break $1 this week!
It appears that Sirius XM Radio (Nasdaq: SIRI) CEO Mel Karmazin has pulled off another deal of the decade, and Sirius XM will not be required to execute its shareholder approved reverse split.
Satwaves has learned that the Securities and Exchange Commission on January 29, 2010 has approved a Nasdaq motion to extend compliance periods for listed companies that fall below its minimum bid standard, up to 360 days beyond the initial 180 day notice. The newly adopted regulation now provides a maximum 18 month period for select companies to regain compliance.
On August 17, 2009, The NASDAQ Stock Market LLC filed with the Securities and Exchange Commission, pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder, a proposed rule change to modify the length of certain compliance periods in Nasdaq’s continued listing requirements and to modify the time available for a company to provide a plan to regain compliance with certain listing requirements. The proposed rule change was published for comment in the Federal Register on September 8, 2009. The Commission received three comment letters on the proposal. On December 28, 2009 the Exchange filed a response to the comment letter. This order approves the proposed rule change.
The new rules completely overhaul the compliance listing standards and review, giving broad discretion to the Nasdaq in approving a company’s plan to regain compliance.
A company could only receive an extension up to this 18-month maximum length if: After reviewing the company’s compliance plan, Nasdaq staff granted the company the maximum 180-day period to regain compliance; the company failed to comply within the time allowed by staff and appealed to a Hearings Panel; and the Nasdaq Listing Council determined to call the matter for review, stay the company’s delisting, and, after reviewing the company’s compliance plan, provide the company with the maximum 360-day period from the date of the Staff Delisting Determination to regain compliance.
Sirius XM Radio CEO Mel Karmazin had stated that he was working closely with the Nasdaq and SEC to argue for a market cap exemption, and the new rules are certainly favorable to companies like Sirius XM Radio, which remains one of the Nasdaq’s most valuable properties. Although certain formalities must now be performed, the new rules will likely extend Sirius XM’s listing under the Nasdaq global markets until at least March of 2011. It is even more likely, that given the extra time the new rules allow, that the share price of Sirius XM Radio common stock will remove any delisting threat long before the potentially extended deadline.