SEC Gives More Comment Time on Nasdaq “Seasoning” Proposal 1

I was finally able to review the SEC’s release on September 12 which extended the time to comment on Nasdaq’s proposal to “season” reverse merger companies on the over-the-counter markets for six months before uplisting.

It appears the SEC is seeking to harmonize the Nasdaq’s proposal with the similar proposals from the NYSE and NYSE Amex, which are a bit different from Nasdaq’s proposal. My guess: they want the Nasdaq proposal to be changed to require a year of seasoning like the NYSE and NYSE Amex proposals.

The release did quote and reference my comment letter quite a bit, but then went on to say that the SEC believes that seasoning “could help prevent fraud and manipulation in this area.” But they want the three proposals to be considered together and want to make sure people have time to comment.

Let’s hope that if seasoning is coming our way that there is a reasonable exemption for a public offering of any size, or at least a much smaller size than the $40 million proposed for NYSE Amex.

Later this week I will provide some thoughts on the SEC roundtable on microcap securities that I participated in last week.

One comment on “SEC Gives More Comment Time on Nasdaq “Seasoning” Proposal

  1. Reply Leo Dec 13, 2011 11:52 am

    I appreciate your comments about SEC. Looking fwd to thoughts from the roundtable meeting.

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