PicoCELA Inc. Addresses Nasdaq Bid Price Notification Issues
PicoCELA Inc. Responds to Nasdaq Notification
PicoCELA Inc. is making headlines after receiving a notification from the Nasdaq Stock Market concerning a deficiency in minimum bid price compliance. The letter was issued by the Listings Qualifications Department, notifying the company that it has not met the minimum bid price requirement outlined in Nasdaq Listing Rule 5550(a)(2). This signifies the company's proactive measures to ensure clarity and transparency in its compliance status.
Under Nasdaq Listing Rule 5550(a)(2), listed companies are mandated to sustain a minimum share price of US$1.00. The rule states that if a company's stock price remains below this threshold for 30 consecutive business days, it will be considered non-compliant. As per the recent closing bid price of the Company’s American Depositary Shares (ADSs), PicoCELA found itself in this unfortunate circumstance.
Despite this notification, it is important to note that PicoCELA's listing on the Nasdaq Capital Market remains secure at this time. The company has been granted a window of 180 calendar days to rectify this situation, aiming for compliance by achieving a closing bid price of at least US$1.00 for at least 10 consecutive business days. The timeline provided by Nasdaq extends until a specified date, giving the company a clear target for compliance.
Plans for Compliance
PicoCELA is aware of its requirement to regain compliance and is actively monitoring the closing bid prices of its ADSs. Should it become necessary, the company is exploring various strategies to achieve this, which may include the implementation of a reverse stock split to increase the share price. This strategic option would need to be executed within specific time frames outlined by Nasdaq rules, ensuring that all measures are in place to maintain its listing.
Operational Stability Amid Changes
The receipt of the Notification Letter does not impede the operations of PicoCELA. The company continues to focus on its core business of providing innovative enterprise wireless mesh solutions. It specializes in the manufacturing, installation, and servicing of advanced mesh Wi-Fi access point devices that cater to a variety of business needs.
PicoCELA's technology, known as the PicoCELA Backhaul Engine, represents a significant advancement in wireless communication, allowing venues to eliminate heavy LAN cabling and opt for a flexible wireless installation. Furthermore, the cloud portal service offered by PicoCELA, named PicoManager, enables users to effortlessly manage connectivity and monitor communication traffic across their networks.
Commitment to Transparency
PicoCELA maintains a strong commitment to transparency with its investors and stakeholders. The company acknowledges the evolving nature of its market and the factors influencing its stock performance. While the Notification Letter may have raised concerns, the company affirms its dedication to compliance and maintaining open communication with all relevant parties.
About PicoCELA Inc.
PicoCELA Inc. operates out of Tokyo and is dedicated to providing cutting-edge enterprise wireless mesh solutions. With a focus on innovation, the company develops and deploys mesh Wi-Fi access point devices that are not only reliable but also economical for various enterprises. Its proprietary mesh communication technology continues to set industry standards, ensuring that customers benefit from high-quality, efficient solutions.
Frequently Asked Questions
What is the recent notification from Nasdaq about?
PicoCELA received a notification from Nasdaq regarding a deficiency in its minimum bid price requirement.
How long does PicoCELA have to regain compliance?
The company has 180 calendar days to achieve compliance with Nasdaq’s minimum bid price requirement.
What actions might PicoCELA take to comply with Nasdaq rules?
PicoCELA is considering options such as a reverse stock split to increase its share price for compliance.
Does this notification affect PicoCELA's business operations?
No, the receipt of the Notification Letter does not impact the operational capabilities of PicoCELA.
What services does PicoCELA provide?
PicoCELA specializes in enterprise wireless mesh solutions, including the manufacturing of mesh Wi-Fi access points and connectivity management services.
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