Borqs Technologies receives Nasdaq notification regarding minimum bid price deficiency

Rhea-AI Summary

Borqs Technologies, Inc. (Nasdaq: BRQS) announced receiving a Notification Letter from Nasdaq regarding non-compliance with the minimum bid price of $1.00 per share. This follows a 30-day period where the closing bid price fell below this threshold. The Company has until February 14, 2022, to regain compliance by meeting the required bid price for at least 10 consecutive trading days. The Notification does not currently impact the Company's Nasdaq listing, and Borqs may consider options such as a reverse share split to address this issue.

Positive

• Company operations remain unaffected by the Notification Letter.
• Borqs has until February 14, 2022, to regain compliance.

Negative

• Failed to maintain a minimum bid price of $1.00 per share for 30 consecutive days.
• Potential delisting if compliance is not regained by the deadline.

SANTA CLARA, Calif., Aug. 20, 2021 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”), today announced that the Company has received a written notification (the “Notification Letter”) from the Nasdaq Stock Market LLC (“Nasdaq”) on August 18, 2021, notifying the Company that it is not in compliance with the minimum bid price requirement set forth in Nasdaq’s rules for continued listing on the Nasdaq.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's ordinary shares for the 30 consecutive business days from July 7, 2021 to August 17, 2021, the Company no longer meets the minimum bid price requirement.

The Notification Letter does not impact the Company's listing on the Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until February 14, 2022, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's ordinary shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive trading days. In the event the Company does not regain compliance by February 14, 2022, the Company may be eligible for additional time to regain compliance or may face delisting. If during any compliance period the ordinary shares have a closing bid price of $0.10 or less for 10 consecutive trading days, Nasdaq’s Listing Qualifications Department shall issue a Staff Delisting Determination.

The Company's business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

Investor Contact:
Sandra Dou
Vice President of Corporate Finance
Borqs Technologies, Inc.
sandra.dou@borqs.net
www.borqs.com

FAQ

What happened to Borqs Technologies regarding Nasdaq compliance?

Borqs Technologies received a Notification Letter from Nasdaq for not meeting the minimum bid price requirement.

What is the deadline for Borqs to regain Nasdaq compliance?

Borqs has until February 14, 2022, to regain compliance with Nasdaq Listing Rule 5550(a)(2).

How can Borqs regain compliance with Nasdaq?

Borqs must achieve a closing bid price of at least $1.00 for 10 consecutive trading days to regain compliance.

What are the consequences if Borqs does not comply with Nasdaq requirements?

Failure to comply may result in delisting from the Nasdaq Stock Market.

Is Borqs' business impacted by the Notification Letter from Nasdaq?

No, the Company's business operations are not affected according to the press release.