Delaware Bio Applauds Rep. John Carney for Introducing Small Cap Liquidity Reform Act

Bill will spur capital formation for small public companies

Business Wire


Today, the Delaware BioScience Association (Delaware Bio) applauds Rep. John Carney (D-DE) for introducing the Small Cap Liquidity Reform Act with Rep. Sean Duffy (R-WI). This bill will support liquidity and capital formation for emerging biotech companies that trade on the public market.

“Delaware Bio thanks Rep. Carney for introducing this important legislation. Emerging biotech companies often operate without product revenue, so they rely on investment capital to fund their research,” said Bob Dayton, President of Delaware Bio. “The Small Cap Liquidity Reform Act will support liquidity and trading volume for growing biotechs seeking investors on the public market.”

“Biotechnology companies employ over 8,000 workers in Delaware, and their research is leading the nation toward the next generation of breakthrough medicines. A functioning public market supports their growth by giving them the ability to finance the decade-long, billion-dollar development timeline. Rep. Carney has taken a significant step toward inspiring biotech research with the Small Cap Liquidity Reform Act.”

Under current U.S. Securities and Exchange Commission (SEC) rules, all securities on the public market are priced in $0.01 increments. This minimum trading increment is known as the “tick size.” The switch to the standard tick size of a penny was enacted in 2000 in order to boost trading in large company stocks, but many smaller issuers have experienced the opposite effect.

The Small Cap Liquidity Reform Act institutes a pilot program that will allow small issuers to choose larger trading increments (either $0.05 or $0.10) in order to spur trading activity in their stock. Allowing an increased tick size will grant flexibility to growing companies and increase the liquidity and capital availability necessary for emerging biotech companies to be successful on the public market.

About the Delaware BioScience Association:

Delaware Bio is a non-profit trade association that serves its members and the State of Delaware by collaborating with other local businesses and organizations to advance the growth of the bioscience industry in Delaware and the region (

Delaware BioScience Association
Alok Patel, Director of Operations
Work: 302-452-1104
Fax: 302-452-1101
Cell: 302-690-6919


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