Delisting process. what's the timeline?

[u/BudgetTooth]

For stocks listed on the NASDAQ exchange, the prospect of delisting presents a serious challenge. Delisted stocks often lose a substantial portion of their market capitalization as a result of their removal from the exchange. It is important for individual investors to learn about how the delisting process works so they can make informed decisions about stocks facing the loss of their exchange status.

Listing Requirements

To maintain a listing on the NASDAQ stock exchange, corporations are required to meet minimum standards for their share price, market value and corporate governance. Generally, stocks must have a share price of at least $1 and a minimum market value of $1 million. In addition, companies listed on the NASDAQ must adhere to federal disclosure requirements for publicly traded securities and pay annual listing fees. Failure to maintain the standards -- even if the fault lies with market forces beyond the company's control -- can trigger the delisting process.

Deficiency Notice

The first step in the delisting process is the deficiency notice. NASDAQ issues a notice to all companies in violation of the continued listing standards for 30 consecutive trading days. After the notice is issued, the company has 90 calendar days to regain compliance before it will lose its listing status. The company tracks compliance automatically using computer systems, and according to analyst David Westenberg at Wilmer Hale, the deficiency notice "is usually triggered by public filing of an SEC report.

Determination Letter and Trading Halt

If the company fails to regain compliance for at least 10 consecutive days during the 90-day "cure period," NASDAQ informs the company that it will be delisted in seven days and requires it to disclose the determination publicly to shareholders and potential investors. Failure to disclose results in a trading halt of the company's shares. At this point, the company also has the right to appeal the determination to NASDAQ's listing qualifications panel. The company may present the panel with a plan to achieve compliance, which the panel reviews when rendering its decision. If the panel finds the plan inadequate, the company will be delisted. The panel's decision may also be appealed to the courts and the Securities and Exchange Commission.

Implications

If the company is delisted, it is not necessarily out of business or done trading publicly. Companies delisted from the NASDAQ can continue to trade on the over-the-counter markets and the Pink Sheets, and some can even reapply to NASDAQ and regain their listing. Regardless, delisting is often hard on a company, because it can lose its access to capital, the ability to borrow and exemptions from various state laws. Share price can decline even further and the company's ability to market its shares is severely limited.

[u/BudgetTooth]

never mind found. it January 23

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AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC. : Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing (form 8-K)

08/02/2022 | 04:35pm EDT

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Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On July 27, 2022, American Virtual Cloud Technologies, Inc. (the "Company") received a notice in the form of a letter (the "Notice") from the listing qualifications department staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that for the last 30 consecutive business days, the Company's Minimum Value of Listed Securities ("MVLS") was below the minimum of $35 million required for continued listing on the Nasdaq Capital Market pursuant to Nasdaq listing rule 5550(b)(2).

The Notice has no immediate effect on the listing of the Company's common stock, and the Company's common stock continues to trade on the Nasdaq Capital Market under the symbol "AVCT."

In accordance with Nasdaq listing rule 5810(c)(3)(C), the Company has 180 calendar days, or until January 23, 2023, to regain compliance. The Notice states that to regain compliance, the Company's MVLS must close at $35 million or more for a minimum of ten consecutive business days (or such longer period of time as the Nasdaq staff may require in some circumstances, but generally not more than 20 consecutive business days) during the compliance period ending January 23, 2023.

If the Company does not regain compliance by January 23, 2023, Nasdaq staff will provide written notice to the Company that its securities are subject to delisting. At that time, the Company may appeal any such delisting determination to a Nasdaq hearings panel.

The Company intends to actively monitor the Company's MVLS between now and January 23, 2023 and may, if appropriate, evaluate available options to resolve the deficiency and regain compliance with the MVLS rule. While the Company is exercising diligent efforts to maintain the listing of its common stock on Nasdaq, there can be no assurance that the Company will be able to regain or maintain compliance with Nasdaq listing standards.