RegulatoryJul 31, 2026, 08:33 AM
Netcapital: Nasdaq MVLS Delisting Rule Stayed by SEC
AI Summary
Netcapital Inc. announced that a new Nasdaq rule, which would have subjected companies with a market value of listed securities (MVLS) below $5 million to immediate suspension and delisting, has been automatically stayed by the SEC's full Commission. The rule, approved by SEC staff on July 22, 2026, drew extensive concern for its lack of a cure period or stay pending appeal. Netcapital's CEO, Todd Violette, expressed encouragement, stating the stay provides clarity for shareholders and allows the company to continue executing its transformation and turnaround plan.
Key Highlights
- Nasdaq's new rule would delist companies with Market Value of Listed Securities (MVLS) below $5 million for 30 consecutive business days.
- The rule, approved by SEC staff on July 22, 2026, lacked a cure period or stay pending appeal.
- The SEC's full Commission has automatically stayed the new MVLS delisting rule pending review.
- The $5 million MVLS delisting requirement is not currently in effect.
- Netcapital CEO Todd Violette stated the stay provides clarity for shareholders and allows the company to continue its turnaround plan.
- The stay is procedural; the Commission may ultimately affirm, modify, or set aside the delegated action.
Price Impact
More from NCPL