Oblong Granted 180-Day Extension by Nasdaq to Regain Compliance with Bid Price Rule
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Insights
The extension granted to Oblong, Inc. by Nasdaq to meet the minimum bid price requirement represents a critical juncture for the company. From a market analyst perspective, the implications of this development are multifaceted. Firstly, the extension provides a window of opportunity for Oblong to implement strategic initiatives aimed at bolstering investor confidence and elevating stock prices. This could involve operational improvements, cost management, or new product launches.
However, the potential for delisting remains a significant risk. Delisting typically leads to reduced liquidity, limited investor access and a potential decline in share value. Investors must monitor the company's performance closely, considering both the short-term efforts to increase the bid price and the long-term viability of the company's business model. The pressure to perform within the extended timeframe could also induce volatility in the company's stock price as the deadline approaches.
As a financial analyst, examining Oblong's financial health is pivotal in assessing the likelihood of the company regaining compliance with the Nasdaq's Bid Price Rule. The company's future financial statements will be scrutinized for revenue growth, expense control and cash flow management. These indicators will provide insight into the company's operational efficiency and its ability to attract investment.
Investors should also be aware of any financial restructuring or equity financing that the company might undertake to improve its stock price. Such actions can dilute current shareholders but may be necessary to meet Nasdaq's requirements. It's important to evaluate the company's financial strategies in the context of its industry and competitive landscape, as these will influence its ability to sustain improvements in stock performance.
From a legal standpoint, the notification from Nasdaq outlines a clear regulatory framework that Oblong must navigate. The conditions set forth for regaining compliance are legally binding and failure to meet them could result in delisting. It is essential for the company to understand the legal ramifications of delisting, including the procedural aspects of appealing to a hearings panel.
Investors should be cognizant of the legal disclosures and risk factors communicated by the company in relation to this extension. The company's adherence to the Nasdaq Listing Rules and the transparency of its communications regarding compliance efforts will be key in maintaining shareholder trust during this period.
If the Company does not regain compliance with the Bid Price Rule during the additional 180-day extension, Nasdaq will provide written notification to the Company that its Common Stock will be delisted. At that time, the Company may appeal the relevant delisting determination to a hearings panel pursuant to the procedures set forth in the applicable Nasdaq Listing Rules. However, there can be no assurance that, if the Company does appeal the delisting determination by Nasdaq to the hearings panel, that such appeal would be successful.
The Company intends to actively monitor the closing bid price of its Common Stock and may, if appropriate, consider implementing available options to regain compliance with the Bid Price Rule under the Nasdaq Listing Rules.
Nasdaq's extension notice has no immediate effect on the listing or trading of the Company's Common Stock, which will continue to trade on the Nasdaq Capital Market under the symbol “OBLG”.
About Oblong, Inc.
Oblong (Nasdaq:OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 and enterprise customers. For more information, visit www.oblong.com and Oblong’s Twitter and Facebook pages.
Forward looking and cautionary statements
This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to the Company’s ability to regain compliance with the Bid Price Rule, the Company’s plans to consider implementing available options to regain compliance with the Bid Price Rule, and the Company’s intention to appeal any future delisting determination. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the risk that the Company may not meet the minimum bid price requirement during any compliance period or in the future, the risk that the Company may not otherwise meet the requirements for continued listing under the Nasdaq Listing Rules, the risk that Nasdaq may not grant the Company relief from delisting if necessary, the risk that the Company may not ultimately meet applicable Nasdaq requirements if any such relief is necessary, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2023 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240320749578/en/
Investor Relations Contact
David Clark
investors@oblong.com
(213) 683-8863 ext. 5
Source: Oblong, Inc.
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