SigmaTron International Faces Nasdaq Compliance Challenge
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SigmaTron International Faces Nasdaq Compliance Challenge
SigmaTron International, Inc. has announced a notification from the Nasdaq Stock Market regarding its compliance with continued listing requirements. The notice indicated that SigmaTron is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Form 10-K for the fiscal year ending April 30, 2024. This communication does not immediately affect the listing or trading of the Company’s common stock on the Nasdaq Capital Market.
Details of the Notification
The Company had previously submitted a Notification of Late Filing on Form 12b-25, indicating a delay in the filing of its Form 10-K. This delay is attributed to the need for additional time to finalize year-end close procedures linked to ongoing negotiations with its lenders regarding credit agreement amendments. Such negotiations involve J.P. Morgan Chase Bank and TCW Asset Management Company.
Timeline for Compliance
Nasdaq has established a 60-calendar-day window for SigmaTron to submit a compliance plan. This plan, due by a specified date, will outline the Company’s strategy to regain compliance with the listing requirements. If approved, Nasdaq may grant an extension of up to 180 calendar days to allow the Company to meet the necessary regulatory standards.
Current Operations
SigmaTron is actively working to complete its Form 10-K to ensure compliance with the necessary regulations. The operations of SigmaTron, which is headquartered in Elk Grove Village, Illinois, primarily focus on electronic manufacturing services (EMS). The Company provides a range of components and services, including printed circuit board assemblies and completely assembled electronic products.
Manufacturing Facilities and Services
With multiple manufacturing facilities located in various regions, SigmaTron demonstrates a commitment to providing quality services. These facilities are situated in places such as Acuna, Chihuahua, and Tijuana, Mexico; Union City, California; Suzhou, China; and Biên Hòa City, Vietnam, enhancing the Company's global reach. Additionally, SigmaTron operates an International Procurement Office and a Compliance and Sustainability Center in Taipei, Taiwan.
Strategic Positioning and Challenges
The Company continues to face various challenges in its operational environment. These challenges stem from dependence on significant customers, market acceptance of its products, and competitive pressures. SigmaTron’s management remains focused on navigating these issues while adapting to ongoing changes in market conditions.
Potential Impact of External Factors
External factors such as inflation, interest rate fluctuations, and global supply chain disruptions can significantly affect the operations of SigmaTron. Moreover, geopolitical tensions and public health crises continue to pose risks to the Company’s operational stability and growth potential. SigmaTron’s ability to effectively manage these challenges will be critical for its long-term success.
About SigmaTron International, Inc.
SigmaTron International, Inc. specializes in the provision of electronic manufacturing services and strives to deliver high-quality products to its customers. With a dedication to innovation and efficiency in its manufacturing processes, the Company is well-positioned to adapt to the evolving demands of the industry.
For Further Information Contact:
SigmaTron International, Inc.
James J. Reiman
1-800-700-9095
Frequently Asked Questions
What prompted the notice from Nasdaq?
The notice was issued because SigmaTron did not timely file its Form 10-K for the fiscal year ending April 30, 2024.
How will SigmaTron respond to the Nasdaq notice?
SigmaTron must submit a compliance plan within 60 days to address how it will regain compliance with Nasdaq's listing rules.
What is the significance of the Form 10-K filing?
The Form 10-K is an essential report that provides a comprehensive overview of the Company's financial performance and operational status for the fiscal year.
Where are SigmaTron’s manufacturing facilities located?
The manufacturing facilities are located in various regions, including Mexico, California, China, and Vietnam.
Who can be contacted for more information about SigmaTron?
For further inquiries, James J. Reiman of SigmaTron International can be reached at 1-800-700-9095.
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