After recent conversations with the NYSE MKT and the Nasdaq Capital Market regarding the filing of an initial listing application for one of our clients, it became clear that an uplisting to the Nasdaq Capital Market would be a more clear path. 

In addition to wanting the standard documented initial listing standards satisfied, the NYSE MKT wanted our client to show a required level of operating capital for five prior quarters, and to be able to demonstrate that after a planned concurrent underwritten offering that the company would have sufficient capital for operations for an extended period of time, as well as sufficient shareholders equity to maintain the listing.

The NYSE MKT also required our client company to meet certain ‘subjective’ listing standards before they would approve the initial listing application.

The Nasdaq Capital Market, on the other hand, communicated to us that if their documented initial listing standards were met, our client company could be listed on the Nasdaq Capital Market without any further requirements or ‘subjective’ standards being met. 

The Nasdaq Capital Market has ‘objective’ listing standards whereas the NYSE MKT has both ‘objective’ and ‘subjective’ standards which are subject to review by a listing committee. As a result of the above, we advised our client to list their securities on the Nasdaq Capital Market.