Nasdaq has refused Generation Income Properties a second 180 days on the dollar rule, because a different rule is broken as well

A hearings panel will decide whether Generation Income Properties keeps its Nasdaq listing, and the company has until Thursday to write to it.

The Tampa company told the SEC on Wednesday afternoon that Nasdaq wrote to it on 6 August. The letter said two things. It has not regained compliance with the minimum bid price rule, which requires a closing bid of at least $1 over 30 consecutive business days and which it has been out of since January. And it is not eligible for the second 180 day compliance period the rules would otherwise allow.

The reason for the refusal is a second deficiency. A company asking for more time on the bid price has to satisfy the exchange's other continued listing standards, and Nasdaq says this one does not meet the requirement to keep at least $1.0m of market value in publicly held shares.

So the file goes to the Nasdaq Hearings Panel, which the filing says has not yet issued a decision. The company was told to put its view on the additional deficiency in writing no later than 13 August. It says it plans to respond on time, and it says there is no assurance the panel will give it more time or that compliance will be regained.

The other letter

Four days later the same exchange wrote with the opposite news.

On 10 August Nasdaq confirmed that the company had regained compliance with Listing Rule 5550(b)(1), which requires $2,500,000 of stockholders' equity from issuers on the Nasdaq Capital Market. That is one standard cleared while two remain open.

It arrives with a condition attached. The company is under a mandatory panel monitor for one year from 10 August. If the listing qualifications staff finds the equity rule broken again inside that year, a delist determination letter follows and the company may request a new hearing. What it may not do, the filing says, is submit a plan of compliance, and the staff may not grant it additional time.

Three standards are named in the document. Two are unmet, and the third is the one being watched.