Adrian J Cotterill, Editor-in-Chief
RMG Networks Holding Corporation (NASDAQ: RMGN) announced last week that the Listing Qualifications Staff of The NASDAQ Stock Market had granted their request for an additional extension through September 18, 2017, to regain compliance with the minimum bid price requirement for continued listing on The NASDAQ Capital Market.
RMG was notified by Nasdaq on September 19, 2016, that it no longer satisfied the minimum bid price requirement for continued listing of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2). In anticipation of not meeting the minimum bid price requirement by March 20, 2017, the end of its initial 180-day grace period, RMG applied for an additional 180-day grace period to regain compliance with the Nasdaq’s minimum bid price requirement. In order to regain compliance, the minimum bid price per share of their common stock must be at least $1.00 for at least ten consecutive business days during the additional 180-day grace period, which will end on September 18, 2017.
RMG also provided written notice of its intention to cure the minimum bid price deficiency during the second grace period by effecting a reverse stock split, if necessary.
RMG from the NASDAQ Capital Market to the NASDAQ Global Market in 2013, then moved back onto the NASDAQ Capital Market in early 2016 when it could not again, meet the minimum bid price.
The Capital Market (small cap) is an equity market for companies that have relatively small levels of market capitalization. Listing requirements for such ‘small cap’ companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalisation.
The Global Market (mid cap) is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet Nasdaq’s strict financial and liquidity requirements, and corporate governance standards.
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