Earlyworks Co., Ltd. Secures Nasdaq Compliance Extension
Nasdaq Grants Earlyworks Co., Ltd. an Extension
Earlyworks Co., Ltd. (Nasdaq: ELWS), a pioneer in private blockchain technology based in Japan, has recently been granted an extension by the Nasdaq Hearings Panel. This decision allows the company additional time to comply with continued listing requirements on the Nasdaq Capital Market.
Details on Non-Compliance and Hearing
The company initially faced challenges, having received a determination letter from Nasdaq indicating that it had not met the minimum market value required for listed securities, which stands at $35 million. This issue arose as the Company’s stock price fell below this threshold for 30 consecutive trading days, and despite efforts, it could not regain this compliance within the allowed 180-day grace period.
Strategic Steps Towards Compliance
In response to this situation, Earlyworks proactively requested a hearing, effectively delaying the suspension and potential delisting. In conjunction with this, the Company indicated a strategic pivot towards compliance via Nasdaq's alternative standard, the Equity Rule, which necessitates a minimum stockholders’ equity of $2.5 million.
Plans for Regaining Compliance
As part of its strategy, Earlyworks is exploring various financing options and partnerships with external entities to enhance its equity position. During the recent hearing, the Panel acknowledged the Company’s efforts and has granted them an extension until September 19, 2025, to fulfill the compliance requirements. The conditions set forth include the need for public disclosures that outline the actions taken to meet the Equity Rule.
Requirements for Compliance
By the specified deadline, Earlyworks must file disclosures that could include a balance sheet, not older than 60 days, with adjusted pro forma figures reflecting significant transactions. Alternatively, they could present an assertion backed by a pro forma balance sheet to affirm their regained compliance status.
Continued Trading of ADSs
Throughout this extension period, Earlyworks' American Depositary Shares (ADSs) will remain listed and are eligible for trading, marking a pivotal time for the Company to address its compliance matters effectively. This trading status provides the Company with leverage as it works diligently towards meeting the Nasdaq requirements.
Innovative Technology from Earlyworks Co., Ltd.
Earlyworks is known for its innovative Grid Ledger System (GLS), a private blockchain technology that stands at the forefront of modern data solutions. This technology is designed for various industries, including real estate, telecommunications, and financial services. The GLS offers benefits such as rapid transaction speed, security, and tamper resistance, enabling businesses to take advantage of blockchain’s capabilities.
Expanding Applications of GLS
The Company’s mission is to refine and enhance GLS, ultimately establishing it as a critical infrastructure within the evolving Web3 environment. With a processing speed of just 0.016 seconds per transaction, GLS represents a significant advancement for industries seeking efficiency and reliability.
Contact Information
For further inquiries regarding this announcement, interested parties may reach out to Earlyworks Co., Ltd. at:
Contact E-MAIL: ew-ir@e-arly.works
Frequently Asked Questions
What is the key reason for Earlyworks’ extension from Nasdaq?
Earlyworks sought an extension due to non-compliance with Nasdaq listing requirements concerning market value of listed securities.
What steps is Earlyworks taking to regain compliance?
The Company is exploring strategic financing options and partnerships and plans to provide required disclosures to Nasdaq.
Until when has Earlyworks been granted to meet compliance?
The Nasdaq Hearings Panel has granted Earlyworks an extension until September 19, 2025, to regain compliance.
What is the Grid Ledger System?
The Grid Ledger System (GLS) is a proprietary private blockchain technology developed by Earlyworks, designed for various applications across multiple industries.
How does the suspension affect Earlyworks’ trading status?
During the extension, Earlyworks’ American Depositary Shares will continue to be traded on the Nasdaq Capital Market, allowing investors to still participate.
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