Maiden at risk of Nasdaq delisting over share price

Nasdaq has warned reinsurer Maiden Holdings that it has failed to meet the stock market’s continued listing requirements and that it risks potentially being delisted.

In a letter sent to the reinsurer, Nasdaq said Maiden’s common stock had closed below $1 per share for 30 consecutive days. Maintaining a share price of over $1 is one of the requirements for staying listed with the exchange.

Maiden now has 180 days, or until 14 October 2019, to re-establish compliance by ensuring its closing bid price for common stock is at least $1 per share for a minimum of 10 consecutive business days.

If the reinsurer meets this requirement, Nasdaq will send a written notice confirming compliance.

Another option to comply with the exchange’s requirements is to implement a reverse stock split. This would mean effectively merging shares to form a smaller number of proportionally more valuable shares. However, if the company decides to do this it must complete the split no later than 10 business days before 14 October 2019.

In the event that Maiden fails to regain compliance by 14 October 2019, Nasdaq will “provide written notification to the company that its common stock may be delisted”.

The reinsurer can appeal the decision to a Listing Qualifications Panel, which will delay the delisting process until the appeal hearing decision.

Alternatively, Maiden may submit an application on or before 14 October 2019 to transfer its securities to the Nasdaq Capital Market. This might make the company eligible for an additional 180-days to comply.

However, it would only be eligible if it meets the continued listing requirement for market value of publicly held shares as well as all other initial listing standards, with the exception of the bid price requirement, for the Nasdaq Capital Market.

The reinsurer would also need to provide written notice to the exchange of its intention to rectify the share price issue during the extended compliance period by implementing a reverse stock split if necessary.

Maiden acknowledged the notice in an SEC filing.

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