The Securities and Exchange Commission (SEC) has given approval for new stringent exchange rules for companies that enter the U.S. market through reverse mergers, The Wall Street Journal reports. Before listing on Nasdaq, NYSE Euronext and NYSE Amex, it will be mandatory for a reverse-merger company to be in the U.S. over-the-counter market or on another regulated U.S. or foreign exchange for at least a year. The new rules also require a company to file all required reports, including audited financial statements, with the commission.
A reverse-merger company should also maintain a minimum share price for 30 of 60 trading days immediately prior to listing. Trading in more than a dozen reverse-merger companies has been suspended by the SEC because of lack of current, accurate information about the companies.
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