Nasdaq Implements Accelerated Delisting for Securities Trading Below $0.10 for Ten Consecutive Trading Days
IntroductionOn December 5, 2025, the Securities and Exchange Commission (SEC) approved Nasdaq’s proposal to amend its minimum bid price requirements for listed companies.[1] The amended rule establishes an expedited delisting process for securities whose closing bid price falls to $0.10 or below for ten consecutive trading days. This “Modified Low-Price Requirement” became effective on January 19, 2026, and represents a significant departure from Nasdaq’s traditional compliance framework by eliminating the standard grace periods typically afforded to companies facing bid price deficiencies.BackgroundExisting Minimum Bid Price StandardsUnder Nasdaq’s continuing listing standards,[2] companies must maintain a minimum closing bid price of $1.00 per share. A deficiency arises when a security’s closing bid price remains below $1.00 for 30 consecutive trading days. Traditionally, upon receiving a deficiency notice, companies are granted a compliance period—typically 180 calendar... Read the complete article here...Copyright © 2026 Robinson & Cole LLP. All rights reserved.
