MTS Announces Receipt of notice of deficiency with Nasdaq Continued Listing Requirement

Rhea-AI Summary

Mer Telemanagement Solutions Ltd. (MTSL) announced receiving a notification from Nasdaq about non-compliance with the minimum stockholders' equity requirement of $2.5 million. The company has 45 days until July 8, 2021, to submit a compliance plan. If accepted, Nasdaq may grant an extension of up to 180 days for compliance evidence. Previously, on April 15, 2021, MTSL entered a merger agreement with SharpLink, which is expected to help improve compliance with Nasdaq requirements.

Positive

• Entered into a merger agreement with SharpLink, which may help achieve Nasdaq compliance.

Negative

• Received notice of non-compliance with Nasdaq's minimum stockholders' equity requirement of $2.5 million.
• Did not meet alternative compliance standards related to market value and net income.

RA'ANANA, Israel, May 24, 2021 /PRNewswire/ --  Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact center software, announced that it received today a letter from the Listing Qualifications staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that it is no longer in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders' equity of at least $2,500,000. Further, the Company did not meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, as set forth in Nasdaq Marketplace Rule 5550(b)(1). In accordance with Nasdaq Marketplace Rule 5810(c)(2)(A), the Company has 45 calendar days, or until July 8, 2021, to submit a plan to regain compliance. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from the date of the letter to evidence compliance. The notification letter has no immediate effect on the Company's listing on the Nasdaq Capital Market.

As previously reported on April 15, 2021 the Company  entered into a definitive Agreement and Plan of Merger with SharpLink, Inc., a company incorporated under the laws of the State of Minnesota and a leading online technology company that works with sports leagues, fantasy sports sites and media companies to connect fans to relevant and timely betting content sourced from its sportsbook partners. The Company believes that following the closing of the merger it will be in compliance with the requisite Nasdaq listing requirements.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. Headquartered in Israel, MTS markets its solutions through wholly-owned subsidiaries in Israel, the U.S. and Hong Kong, as well as through distribution channels. For more information please visit the MTS web site: www.mtsint.com.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company's ability to achieve  profitable operations, its ability  to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the impact of COVID-19 on the Company and its customers, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission.

Contact: 
Ofira Bar, CFO 
Tel: +972-9-7777-540

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SOURCE Mer Telemanagement Solutions Ltd. (MTS)

FAQ

What is the current compliance status of MTSL with Nasdaq?

MTSL is currently not in compliance with Nasdaq's minimum stockholders' equity requirement of $2.5 million.

What deadline has MTSL been given to regain Nasdaq compliance?

MTSL has been given 45 days until July 8, 2021, to submit a plan for regaining compliance.

What could happen if MTSL's compliance plan is accepted?

If accepted, Nasdaq may grant MTSL an extension of up to 180 days to demonstrate compliance.

What significant merger did MTSL announce on April 15, 2021?

MTSL announced a definitive merger agreement with SharpLink, Inc.

What is the minimum stockholders' equity required by Nasdaq for listed companies?

The minimum stockholders' equity required by Nasdaq is $2.5 million.