First Quotation Board Closing
New rules will affect all First Quotation Board listed companies
All companies listed on the First Quotation Board segment of the Frankfurt Stock Exchange will be delisted if they do not meet the new requirements and upgrade to the Entry Standard segment before 15 December 2012.
The process of upgrading to the Entry Standard takes considerable time and, as such, it is urgent that all companies that have not already done so begin the Entry Standard upgrade process immediately in order to meet the 15 December deadline.
The First Quotation Board segment of the Frankfurt Stock Exchange open market has been closed to new admissions since December 2011 and will close entirely on 15 December 2012. This means that companies currently listed on the First Quotation Board segment (as their only listing) must upgrade to either the Entry Standard, General Standard or Primary Standard segment of the exchange, or they will be delisted.
Access to the Entry Standard and higher segments requires an approved prospectus/public offering as well as meeting the new Entry Standard requirements, effective 1 July 2012. Companies already listed on the Entry Standard segment of the Frankfurt Stock Exchange prior to 1 July 2012 are “grandfathered” and thus, are not required to meet the new mandatory prospectus requirements. However, at this point, all companies still listed on the First Quotation Board segment must meet the new Entry Standard segment rules, summarized below, or be delisted on 15 December 2012
New Entry Standard segment rules
All company applications for admission to the Entry Standard segment, including First Quotation Board upgrades must now meet all of the following minimum requirements:
- Approved prospectus;
- Minimum paid-in capital of € 750,000;
- Minimum of two (2) years operating history;
- Minimum nominal value of € 1.00 per share;
- Minimum of 10% “free float”
- No cash shells
It bears repeating that it is now quite urgent that all companies listed on the First Quotation Board begin the process of upgrading to the Entry Standard immediately in order to meet the deadline for upgrade.
As an alternative to the Frankfurt Stock Exchange, please contact MD Capital Advisors about listing your company in the U.S..