The Securities and Exchange Commission approved the stringent reverse merger listing standards proposed by three securities exchanges following a series of trading suspension of more than 35 companies in recent months due to the lack of current and accurate financial and general information about the firms. A number of these companies are formed via reverse mergers, and they are based overseas.
In the proposed rules filed by the New York Stock Exchange, NYSE-Amex, and Nasdaq, all three exchanges had proposed to include higher reverse merger listing standards with the mandatory requirements that companies must file an annual report with the SEC, be listed for at least one year on an over-the-counter or a regulated foreign exchange, a.k.a., the “seasoning” period, and keep a minimum share price of $4 in 30 out of the most recent 60 trading days.
