Nasdaq Biotech Listing Requirements

Over the last twenty-five years, NASDAQ has evolved into the preferred trading market for technology and bio-technology companies. Please note that while NASDAQ is known for hosting many technology and biotechnology companies, it also lists companies from various other sectors.

NASDAQ is split into three tiers; the Global Select Market, Global Market and Capital Market. All tiers of NASDAQ are much more volatile than the trading markets of traditional stock exchanges.

Going Public on Nasdaq

Going public through an initial public offering (IPO) can be an exciting and rewarding time for companies. It’s a significant milestone in a company’s growth and can provide access to additional capital and increased visibility in the marketplace.

However, the process of going public can be complex and requires careful planning and execution. Navigating the Nasdaq IPO process can be complex and requires careful planning and execution. It’s important for companies to work closely with their underwriters and legal counsel to ensure that they meet all of the necessary criteria for a successful listing on Nasdaq.

Going public through an IPO can be a significant milestone for companies, but it requires careful planning and execution.

But Nasdaq is home to more than just IPOs. The term direct listing refers to a private company listing on Nasdaq, or another exchange, without concurrently raising capital.

Special Purpose Acquisition Companies (SPACs) are publicly-traded investment vehicles that raise funds via an IPO in order to complete a future acquisition. They enable private companies to have a unique way to access the public markets, while offering investors a way to co-invest side-by-side with best-in-class sponsors.

Listing Requirements

Applicants must satisfy certain financial, liquidity and corporate governance requirements to be approved for listing on any of these market tiers. Corporate governance requirements are the same across all Nasdaq market tiers. The listing requirements for a Nasdaq IPO are complex and require companies to meet certain financial benchmarks, share price requirements, corporate governance requirements, and disclosure requirements.

One of the key requirements for a Nasdaq IPO is meeting certain financial benchmarks. This includes a minimum of $5 million in stockholders’ equity and a minimum of 1.25 million publicly traded shares outstanding. Additionally, Nasdaq requires a minimum market capitalization of $50 million for listing.

Companies must also meet certain share price and corporate governance requirements to list on Nasdaq. The minimum bid price for a company’s stock must be at least $4 per share at the time of listing.

In order to list on Nasdaq, companies must meet certain disclosure requirements and comply with all applicable laws and regulations.

Publicly held shares is defined as total shares outstanding, less any shares held directly or indirectly by officers, directors or any person who is the beneficial owner of more than 10% of the total shares outstanding of the company.

Issuers listing concurrently with an initial public offering or as a spin-off may alternatively have 2,200 total shareholders.

Additional Nasdaq Markets

For small and medium sized growth companies, we offer access to financial markets through our European Growth Market, Nasdaq First North Growth Market.

Nasdaq First North is our European growth market for small- and medium sized companies. A company can join Nasdaq First North regardless of the country of origin or industry sector. A key factor for success is that there is investor interest for the company’s share.

Nasdaq First North Premier is our European growth market designed to further assist companies in raising investor visibility and to prepare them for a Main Market listing.

The Main Market is our Nordic regulated market suited to companies that can adhere to the highest standards. Today, 625 companies are traded across our Main Markets in Stockholm, Copenhagen, Helsinki and Iceland, including some of the most innovative companies in the Nordic region.

By listing on the Main Market, companies benefit from increased visibility and investor exposure, and Nasdaq’s efficient and independent surveillance of issuers, members and trading.

Nasdaq Baltic exchanges provide regulated market and First North listing services for a variety of financial instruments as well as services related to the public trading of financial instruments.

Specific Listing Rules

• Companies listing on the Nasdaq Stock Market can complete the entire application process electronically.
• You can complete your form all at once or save your work and continue another time.
• We can pre-populate much of the company's general information for you.
• Note: a reserved trading symbol is not required for non-convertible bonds, other than baby bonds.

Applicants must satisfy the requirements set forth in the Rule 5600 Series, and pay any applicable fees in the Rule 5900 Series.

5500. Qualification Requirements for Initial Listing

To qualify for initial listing, an applicant must satisfy the requirements of Rule 5550(a) and at least one of the Standards set forth in Rule 5550(b).

The Nasdaq Capital Market requires a minimum of $2,500,000 in stockholders’ equity, $35 million in market capitalization, or $5 million in net income from continuing operations for the last three years.

5550. Continued Listing Requirements

To remain listed, companies must meet certain requirements in (1) through (5) below in order to remain listed.

Penny Stock Provisions

(a) Penny Stock Provisions: Nasdaq will apply the definition of "penny stock" contained in Rule 3a51-1 under the Act when evaluating an applicant’s compliance with the initial listing requirement for certain companies with a minimum bid price below $4.

(b) Determination of closing price: For purposes of the rules, the term "closing price" means the Nasdaq Official Closing Price.

Warrants and Subscription Receipts

Warrants; and Subscription Receipts on the Capital Market.

Subscription Receipts are securities used to raise money for a specific acquisition. Subscription Receipts, or such earlier time as is specified in the operative agreements.

Important Disclaimer: This material is intended for general information purposes only and does not constitute legal advice. You are advised to contact legal counsel prior to undertaking any securities transaction.

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