TheCorporateCounsel.net

In addition to its updates to initial & annual listing fees, Nasdaq has also proposed an immediately effective update to increase the fees it charges companies seeking review of a delisting determination, public reprimand letter or written denial of an initial listing application. Here’s more detail:

Pursuant to Nasdaq Listing Rule 5815, companies may seek review of a determination by the Nasdaq’s Listing Qualifications Department (“LQ Staff”) to deny initial listing or delist a company’s securities or to issue a Public Reprimand Letter, by requesting a hearing before an independent Hearings Panel (the “Hearings Panel”). Listing Rule 5815(a)(3) provides that to request a hearing, the company must, within 15 calendar days of the date of the LQ Staff delisting determination, public reprimand letter, or written denial of an initial listing application, submit a hearing fee in the amount of $10,000.

Companies may also appeal a Hearings Panel decision to the Nasdaq Listing and Hearing Review Council (the “NLHRC”). Listing Rule 5820(a) requires a company seeking such an appeal to submit a fee of $10,000. Nasdaq last changed these fees in 2013.

Nasdaq now proposes to increase the fee for review by a Hearings Panel to $20,000 and the fee to appeal a Hearings Panel decision to the NLHRC to $15,000. Nasdaq is increasing the fees because the costs incurred in preparing for and conducting hearings and appeals have increased since the fees were last changed.

While the new fees aren’t exorbitant, they’re a big increase on a percentage basis. That might be a tough pill to swallow for companies that are already in a rough position. But you can’t blame Nasdaq for needing to bump up the rates – have you seen the price of eggs lately?!

Comments are due 21 days after publication of the proposal in the Federal Register – here’s the form.

– Liz Dunshee