Towerstream can continue listing on Nasdaq Capital Market on conditional basis

THE NASDAQ Hearings Panel is allowing Towerstream Corp., a provider of wireless communication services, to continue its listing as a publicly traded company on the Nasdaq Capital Market on a conditional basis, as the company works toward maintaining qualifying levels of equity and per share value.
THE NASDAQ Hearings Panel is allowing Towerstream Corp., a provider of wireless communication services, to continue its listing as a publicly traded company on the Nasdaq Capital Market on a conditional basis, as the company works toward maintaining qualifying levels of equity and per share value.

MIDDLETOWN – The Nasdaq Hearings Panel is allowing Towerstream Corp. to continue its listing as a publicly traded company on the Nasdaq Capital Market on a conditional basis, as the telecommunications company works toward maintaining qualifying levels of equity and per share value.
Towerstream’s public trading problems date back to November when Nasdaq notified the company it no longer satisfied a minimum $1 per share closing bid for 30 consecutive days, putting it at risk of becoming delisted from the U.S. stock exchange.
After receiving a 180-day grace period to regain compliance, Towerstream later failed to satisfy Nasdaq’s minimum $2.5 million stockholders’ equity requirement, further exacerbating its risk of becoming delisted.
In an attempt to remedy the issues, Towerstream board of directors in May approved a one-for-seven reverse split of Towerstream common stock, dividing its total number of shares by seven in an attempt to increase the par value.
On July 7, the company increased that effort announcing a one-for-20 reverse split.
The reverse split is “expected to satisfy the bid price requirement,” according to a federal filing, and Nasdaq agrees, subject to the following:

  • On or before July 24, Towerstream must show a closing bid price of $1 or more per share for a minimum of the ten prior consecutive trading days
  • Towerstream in September and October must provide Nasdaq an update on its progress toward completion of its compliance plan
  • On or before Nov. 22, Towerstream must publicly announce and inform Nasdaq of its compliance with the stockholders’ equity requirement and provide updated projections demonstrating continued compliance through November 2017.

If the company fails to demonstrate compliance by Nov. 22, Nasdaq will issue a final delisting determination, according to the filing.
“[Towerstream] is diligently working to evidence compliance with all applicable requirements for continued listing,” according to the company.

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