Structuring for NASDAQ, AMEX
Moving from the Bulletin Board, the Pink Sheets, or from a non-trading vehicle to the NASDAQ or AMEX may give your company additional exposure or prestige. To qualify for these exchanges, there are a number of requirements that need to be met such as:
- Pre-tax income
- Market capitalization
- Market value of public float
- Minimum price of stock
- Operating history
- Shareholder equity
- Number of public shareholders
- Number of shares in public float
Since a significant number of shareholders are required for either the NASDAQ or AMEX, the choice of a Reverse Merger vehicle with a significant shareholder base, or the choice of professionals who can assist in increasing the shareholder base may play an important role in the timing of your listing qualification.
Additionally, since price of the stock and numbers of shares play an important role in meeting NASDAQ or AMEX qualifications, a Reverse Merger can be structured up front that will allow a more expedited listing rather than have to split or reverse-split the stock again after the Reverse Merger.
At Growth Ventures, we are accustomed to planning up front for ways that might add value or accelerate success in the Reverse Merger process. |