SEALSQ Receives Nasdaq Notification Letter Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

SEALSQ Corp (NASDAQ: LAES), a company focused on semiconductors, PKI, and post-quantum technology, has received a Nasdaq notification regarding minimum bid price deficiency. The company's ordinary shares failed to maintain the required $1.00 minimum bid price for the last 30 consecutive business days. SEALSQ has been given an initial compliance period until January 28, 2025, to regain compliance by having its closing bid price at $1.00 or above for at least 10 consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day compliance period. Failure to meet requirements could result in delisting, subject to appeal. SEALSQ intends to monitor the situation and consider available options to resolve the noncompliance.

Positive

• None.

Negative

• SEALSQ's stock price has fallen below the $1.00 minimum bid requirement for Nasdaq listing
• The company faces potential delisting from Nasdaq if unable to regain compliance
• SEALSQ may need to consider a reverse stock split to meet the minimum bid price requirement

Insights

Financial Analyst

SEALSQ's Nasdaq notification regarding minimum bid price deficiency is a significant concern for investors. The company's stock trading below $1 for an extended period indicates weak market perception and potential liquidity issues. While SEALSQ has until January 28, 2025 to regain compliance, failure to do so could lead to delisting, severely impacting investor confidence and the company's ability to raise capital.

The company's options to address this issue include a reverse stock split or improving fundamental performance to attract investors. However, a reverse split doesn't address underlying business challenges. Investors should closely monitor SEALSQ's financial performance and strategic initiatives in the coming months to assess its ability to regain compliance and maintain Nasdaq listing.

Legal Expert

The Nasdaq notification triggers a critical compliance period for SEALSQ. The company now faces a 180-day deadline to meet the $1 minimum bid requirement, with a potential extension. This situation raises governance concerns and may require shareholder approval for certain remedial actions.

If SEALSQ fails to regain compliance, it risks delisting, which could breach loan covenants, trigger default clauses in contracts and impact the company's legal standing. The appeal process to the Hearings Panel provides a final safeguard, but it's important for SEALSQ to proactively address this issue to maintain investor trust and regulatory compliance.

Market Research Analyst

SEALSQ's minimum bid price deficiency reflects broader market skepticism towards small-cap tech companies, especially those in emerging fields like post-quantum technology. The extended period of low stock price suggests investor interest and potential concerns about the company's growth prospects or financial stability.

To regain compliance, SEALSQ needs to improve market perception through strong financial results, strategic partnerships, or significant technological breakthroughs. The semiconductor and cybersecurity markets offer growth potential, but SEALSQ must demonstrate its ability to capitalize on these opportunities. Investors should watch for tangible progress in the company's business metrics and market positioning in the coming months.

Geneva, Switzerland, Aug. 07, 2024 (GLOBE NEWSWIRE) -- SEALSQ Corp (NASDAQ: LAES) ("SEALSQ" or "Company"), a company that focuses on developing and selling Semiconductors, PKI and Post-Quantum technology hardware and software products, today announced that on August 1, 2024, it received a notice (the “Notice”) from The Nasdaq Stock Market, LLC (“Nasdaq”), stating that the Company’s ordinary shares, par value US$0.01 per ordinary share (the “Ordinary Shares”), fail to comply with the $1.00 minimum bid price requirement for continued listing on Nasdaq in accordance with Nasdaq Listing Rule 5550(a)(2) based upon the closing bid price of the Company’s Ordinary Shares for the last 30 consecutive business days prior to the date of the Notice.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until January 28, 2025, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Ordinary Shares must be at least $1.00 for at least 10 consecutive business days prior to January 28, 2025. If that occurs, Nasdaq would then provide a written confirmation of compliance and the matter will be closed.

If the Company is unable to regain compliance by January 28, 2025, the Company may be eligible for an additional 180 calendar day compliance period to demonstrate compliance with the minimum bid price requirement. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and will need to provide written notice to Nasdaq of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company does not qualify for the second compliance period or fails to regain compliance during the second 180 calendar day period, then Nasdaq will notify the Company that its Ordinary Shares will be subject to delisting, at which point the Company would have an opportunity to appeal the delisting determination to a Hearings Panel.

The Company intends to monitor the closing bid price of the Ordinary Shares and consider its available options to resolve the noncompliance with the minimum bid price requirement. Receipt of the Notice has no effect on the Company’s business operations.

About SEALSQ

SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, Medical and Healthcare and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.

Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks. For more information, please visit www.sealsq.com.

Forward-Looking Statements
This communication expressly or implicitly contains certain forward-looking statements concerning SEALSQ Corp and its businesses. Forward-looking statements include statements regarding our business strategy, financial performance, results of operations, market data, events or developments that we expect or anticipates will occur in the future, as well as any other statements which are not historical facts. Although we believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the expected success of our technology strategy and solutions for IoMT Security for Medical and Healthcare sectors, SEALSQ's ability to implement its growth strategies, SEALSQ's ability to continue beneficial transactions with material parties, including a limited number of significant customers; market demand and semiconductor industry conditions; and the risks discussed in SEALSQ's filings with the SEC. Risks and uncertainties are further described in reports filed by SEALSQ with the SEC.

SEALSQ Corp is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

Press and Investor Contacts

SEALSQ Corp. Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@sealsq.com

SEALSQ Investor Relations (US) The Equity Group Inc. Lena Cati Tel: +1 212 836-9611 / lcati@equityny.com Katie Murphy Tel: +212 836-9612 / kmurphy@equityny.com

FAQ

What is the minimum bid price requirement SEALSQ (LAES) must meet for Nasdaq listing?

SEALSQ (LAES) must maintain a minimum bid price of $1.00 per share to comply with Nasdaq's listing requirements.

When is the deadline for SEALSQ (LAES) to regain compliance with Nasdaq's minimum bid price requirement?

SEALSQ (LAES) has until January 28, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

What happens if SEALSQ (LAES) fails to meet Nasdaq's minimum bid price requirement by the deadline?

If SEALSQ (LAES) fails to meet the requirement by January 28, 2025, it may be eligible for an additional 180-day compliance period or face potential delisting from Nasdaq.

How can SEALSQ (LAES) regain compliance with Nasdaq's minimum bid price requirement?

SEALSQ (LAES) can regain compliance if its closing bid price is at least $1.00 for a minimum of 10 consecutive business days before the deadline.