UTStarcom Receives Nasdaq Notice Regarding Minimum Bid Price Requirements

Rhea-AI Summary

UTStarcom (NASDAQ:UTSI) announced it received a delinquency letter from Nasdaq on January 24, 2022, for not meeting the minimum bid price requirement due to its shares closing below $1 for 30 consecutive business days, from December 9, 2021, to January 21, 2022. The Company has a compliance period of 180 days, until July 25, 2022, to regain compliance by achieving a closing bid price of at least $1 for ten consecutive days. UTStarcom is exploring options to address this deficiency, but its shares will continue to be traded on Nasdaq during this period.

Positive

• Company has 180 days to regain compliance with Nasdaq's bid price rule.
• Shares will continue to trade on Nasdaq during the compliance period.

Negative

• Currently not in compliance with Nasdaq's minimum bid price of $1.
• Bid price below $1 for 30 consecutive business days, indicating potential investor concern.

HANGZHOU, China, Jan. 28, 2022 (GLOBE NEWSWIRE) -- UTStarcom (“UTStarcom” or the “Company”) (NASDAQ:UTSI), a global telecommunications infrastructure provider, today announced that it received a delinquency letter from the Nasdaq Listing Qualifications department of the Nasdaq Stock Market LLC (NASDAQ) dated January 24, 2022. The letter states that the Company is currently not in compliance with the minimum bid price requirement set forth under Nasdaq Listing Rule 5450(a)(1) (the “Rule”), because the bid price of the Company’s shares closed below US$1 per share for the 30 consecutive business days from December 9, 2021 through January 21, 2022.

NASDAQ granted the Company a compliance period of 180 calendar days, expiring on July 25, 2022, to regain compliance. The Company will regain compliance if, at any time during this 180-day period, the closing bid price of the Company’s shares is at least US$1 for a minimum of ten consecutive business days. In the event the Company does not regain compliance with the Rule within 180 calendar days, the Company may be eligible for additional time to cure the delinquency.

The Company will consider available options to cure the deficiency and regain compliance with the Rule’s minimum bid price requirement within the prescribed compliance period. The Company’s shares will continue to be listed and traded on the Nasdaq Market during this period, unaffected by the receipt of the written notice from Nasdaq.

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a delinquency notification.

About UTStarcom Holdings Corp.

UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan and India. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com.

For investor and media inquiries, please contact:

UTStarcom Holdings Corp.
Tel: +86 571 8192 8888
Ms. Shelley Jiang, Investor Relations
Email: utsi-ir@utstar.com / shelleyjiang@utstar.com

The Blueshirt Group
Mr. Gary Dvorchak
Email: gary@blueshirtgroup.com

FAQ

What does the Nasdaq delinquency letter mean for UTSI?

It means UTSI is not meeting the minimum bid price requirement of $1 for its shares.

How long does UTSI have to regain Nasdaq compliance?

UTSI has 180 calendar days until July 25, 2022, to regain compliance.

What happens if UTSI fails to comply with Nasdaq requirements?

If UTSI does not comply within 180 days, it may be eligible for additional time to cure the delinquency.

Can UTSI shares still be traded after receiving the delinquency notice?

Yes, UTSI shares will continue to be listed and traded on Nasdaq during the compliance period.