EQONEX Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

EQONEX Limited (NASDAQ: EQOS) faced delisting risks from Nasdaq due to non-compliance with Listing Rule 5550(a)(2). The company received a notice on December 19, 2022, indicating its common stock had closed below $0.10 for 13 consecutive trading days. This follows a previous warning from July 21, 2022, regarding a bid price under $1.00. EQONEX has until January 17, 2023, to regain compliance and is considering options like a reverse share split to address the situation.

Positive

• The company is proactively engaging with the Nasdaq Hearings Panel to present its case.
• EQONEX may consider options such as a reverse share split to regain compliance.

Negative

• The company’s stock has traded below $0.10 for 13 consecutive days, indicating severe financial distress.
• Failure to comply with Nasdaq's Listing Rules may lead to delisting, severely impacting share value.

Singapore, Dec. 21, 2022 (GLOBE NEWSWIRE) -- As announced on July 26, 2022, EQONEX Limited (NASDAQ: EQOS) (“EQONEX” or the “Company”) (Interim Judicial Managers Appointed) received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) on July 21, 2022 that the Company was not in compliance with Listing Rule 5550(a)(2) as the bid price of the Company’s listed securities had closed at less than US$1.00 per share over the last 30 consecutive business days from June 7, 2022 to July 20, 2022. In accordance with Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until January 17, 2023, to regain compliance with Listing Rule 5550(a)(2).

On December 19, 2022, the Company received another notice from Nasdaq that for the past 13 consecutive trading days, the closing bid price of the Company’s common stock has been below $0.10. Accordingly, pursuant to Listing Rule 5810(c)(3)(A)(iii), this matter serves as an additional basis for delisting the Company’s securities from Nasdaq.

The Company will present its views with respect to this additional deficiency at its hearing with the Nasdaq Hearings Panel. 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 for continued listing on Nasdaq.

For investor and media inquiries, please contact:

Investor Relations at ir@eqonex.com

FAQ

What recent compliance issue did EQONEX Limited face with Nasdaq?

EQONEX received a notice from Nasdaq due to its stock closing below $0.10 for 13 days, risking delisting.

What does EQONEX plan to do to address its stock price compliance issue?

EQONEX intends to present its views to the Nasdaq Hearings Panel and may consider a reverse share split.

When is the deadline for EQONEX to regain compliance with Nasdaq listing rules?

EQONEX has until January 17, 2023, to regain compliance with Nasdaq's Listing Rule 5550(a)(2).

What was the previous compliance notice received by EQONEX before the December 2022 notice?

Prior to the December notice, EQONEX was warned in July 2022 about its bid price falling below $1.00.