Nasdaq To Limit Reg A+ To Seasoned Companies
Nasdaq To Limit Reg A+ To Seasoned Companies
A recent blog post by David Feldman Esq., reveals how “Last month, the Nasdaq quietly submitted a proposal to the SEC regarding Regulation A+.”
According to Feldman, the proposal is simple enough to quote: “Any Company listing on Nasdaq in connection with an offering under Regulation A of the Securities Act of 1933 must, at the time of approval of its initial listing application, have a minimum operating history of two years.”
Most of the 10 issuers to use Reg A+ IPOs to list on Nasdaq or NYSE have seen their share prices struggle. This may be attributed to the fact the many of the issuers were relatively new.
Because of this, Nasdaq limiting Reg A+ listing to seasoned issuers might be a good thing. These issuers can first list on the OTC Markets to gain stability in their stock and business before uplisting to a National Exchange when ready.
Learn more HERE.