COMSovereign Receives Anticipated Additional Delinquency Notice from Nasdaq

Rhea-AI Summary

COMSovereign Holding Corp. (NASDAQ: COMS, COMSP) received a notice from Nasdaq on November 16, 2022, regarding its failure to file the Q3 2022 Form 10-Q by the deadline. This could lead to delisting under Nasdaq Listing Rule 5250(c)(1). The company has presented its plan for compliance and requested continued listing while it fulfills the Filing Requirement and maintains the $1.00 bid price. However, there is no guarantee that Nasdaq will approve this request or that the company can meet any granted extension terms.

Positive

• The company has presented a compliance plan to Nasdaq.
• Requested continued listing while fulfilling requirements.

Negative

• Failure to timely file Q3 2022 Form 10-Q raises delisting concerns.
• No assurance that Nasdaq will grant the request for continued listing.

DALLAS, Nov. 18, 2022 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS and COMSP) ("COMSovereign" or the "Company"), a U.S.-based developer of 4G LTE Advanced and 5G communication systems and solutions, today announced that on November 16, 2022, the Company received notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") stating that the Company's failure to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the "Q3 2022 Form 10-Q"), with the Securities and Exchange Commission (the "SEC") could serve as an additional basis for delisting under Nasdaq Listing Rule 5250(c)(1) (the "Filing Requirement").

The Company has already presented its plan to regain compliance with the Filing Requirement, including via the filing of the Q3 2022 Form 10-Q with the SEC, to a Nasdaq Hearings Panel ("the Panel"). At the hearing, the Company requested the continued listing of its securities on Nasdaq pending the Company's compliance with all applicable listing criteria, including the Filing Requirement and the $1.00 bid price requirement, which remains under consideration by the Panel. There can be no assurance that the Panel will grant the Company's request or that the Company will be able to timely satisfy the terms of any extension that may be granted by the Panel. COMSovereign intends to update the market promptly following receipt of the Panel's determination.

For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.

About COMSovereign Holding Corp.

COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.

Forward-Looking Statements

Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:

Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com

and

Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.ne

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SOURCE COMSovereign Holding Corp.

FAQ

What notice did COMSovereign receive from Nasdaq?

COMSovereign received a notice indicating potential delisting due to failure to file its Q3 2022 Form 10-Q.

What is the deadline for COMSovereign to file its Q3 2022 Form 10-Q?

The deadline for filing the Q3 2022 Form 10-Q has already passed, leading to the delisting notice.

What actions is COMSovereign taking regarding the Nasdaq notice?

COMSovereign has submitted a compliance plan to Nasdaq and requested continued listing.

What does the Nasdaq Listing Rule 5250(c)(1) entail?

It pertains to the requirement for timely filing of periodic financial reports.

What could happen if COMSovereign does not comply?

Failure to comply could result in the delisting of its securities from Nasdaq.