Nasdaq Grants Extension to Knightscope Until October 4, 2024

Rhea-AI Summary

Knightscope has been granted an extension by the Nasdaq Hearings Panel to comply with the Bid Price Rule by October 4, 2024. The company, trading under the ticker KSCP, needs to obtain shareholder approval for a reverse stock split by August 16, 2024, and effectuate this split by September 20, 2024. They must maintain a $1 closing bid price for ten consecutive business days before the final deadline. Additionally, Knightscope addressed investor concerns about shares being loaned for short selling in a recent blog post.

Positive

• Knightscope has received an extension to comply with Nasdaq's Bid Price Rule, providing more time to meet listing requirements.
• The company has clear milestones to achieve: shareholder approval by August 16, 2024, and effecting a reverse stock split by September 20, 2024.
• Knightscope's proactive communication addresses investor concerns about short selling.

Negative

• The need for an extension suggests Knightscope is currently not in compliance with Nasdaq's Bid Price Rule.
• The requirement to effect a reverse stock split indicates that the company's stock price is below the minimum bid price requirement.
• Failure to maintain a $1 closing bid price for ten consecutive business days by October 4, 2024, could result in delisting from the Nasdaq.

Company Answers Question on Shorts

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Knightscope, Inc. [Nasdaq: KSCP] (“Knightscope” or the “Company”), an innovator in robotics and artificial intelligence (“AI”) technologies focused on public safety, today announces that the Nasdaq Hearings Panel has granted the Company an extension to regain compliance with The Nasdaq Stock Market LLC’s (“Nasdaq” or the “Exchange”) Listing Rule 5550(a)(2) (the “Bid Price Rule”) as detailed below.

Nasdaq Grants Extension to Knightscope

The Company is granted an exception until October 4, 2024, to effect the reverse stock split, if needed, and thereafter regain compliance with the Bid Price Rule, subject to the milestones outlined below.

1. On or before August 16, 2024, the Company shall obtain shareholder approval for a reverse stock split at a ratio that satisfies the minimum requirement in the Bid Price Rule;
   
   
2. On or before September 20, 2024, the Company shall effect a reverse stock split and, thereafter, maintain a $1 closing bid price for a minimum of ten consecutive business days;
   
   
3. On or before October 4, 2024, the Company shall have demonstrated compliance with the Bid Price Rule, by evidencing a closing bid price of $1 or more per share for a minimum of ten consecutive trading sessions.

Latest Blog Addresses Shares Used to Short

Knightscope investors regularly express ongoing concerns regarding how one might prevent their shares from being loaned for a short interest position. To collectively address this frequently asked question, the Company published a blog that is now available to read here.

About Knightscope

Knightscope builds cutting-edge technologies to improve public safety, and our long-term ambition is to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” “proposes” and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about the Company’s goals, profitability, growth, prospects, reduction of expenses, and outlook. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading “Risk Factors” in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605692944/en/

Public Relations:

Stacy Stephens

Knightscope, Inc.

(650) 924-1025

Source: Knightscope, Inc.

FAQ

What extension did Knightscope receive from Nasdaq?

Knightscope received an extension until October 4, 2024, to comply with the Bid Price Rule.

What are the key dates for Knightscope's compliance milestones?

Key dates include obtaining shareholder approval by August 16, 2024, and effecting a reverse stock split by September 20, 2024.

What is the final deadline for Knightscope to meet Nasdaq's Bid Price Rule?

The final deadline is October 4, 2024.

What is the minimum bid price Knightscope must maintain?

Knightscope must maintain a closing bid price of $1 or more for ten consecutive business days.

How is Knightscope addressing concerns about short selling?

Knightscope has published a blog to address investor concerns about shares being loaned for short interest positions.