Delisting outline of JASDAQ

1. Overview of Delisting Rule

OSE makes securities that performed operating loss and negative in operating cash successive 5 fiscal years delisted.
OSE delists securities, if that don’t progress as their planned business activities and are unable to be profitable after 10 fiscal years, though securities can be listed in the red on JASDAQ Growth.
In addition, if companies violate Disclosure rule or the code of corporate conduct, the most severe measure is to delist them, in other case OSE may take penalty as public announcement (after the second warning) on nature.
OSE thinks the company that have violated repeatedly is lack of quality as listed company, and OSE delists securities, if OSE made warning 3 times in 5 years.

2. Delisting about inappropriate merger

Delisting Regulation pertain to inappropriate merger are enacted to prevent the so-called backdoor listing.OSE enacted the rules that require assessment as initial public listing.
So, as a result of the merger,if OSE dosen’t confirm there isn’t substantial listed company and they can’t pass the assessment, OSE delists them. For more information regarding the delisting, see Q&A.