ClearOne Inc. (NASDAQ:CLRO), a manufacturer of telephone and telegraph apparatus, disclosed on Monday that it has received a warning from the Nasdaq Stock Market about a potential delisting. The company's share price has fallen below the minimum bid price requirement, which could lead to its removal from the exchange if not corrected.
The notice, dated June 20, 2024, indicated that ClearOne's common stock had closed below the required $1.00 minimum bid for 30 consecutive trading days, violating Nasdaq's Marketplace Rule 5550(a)(2). To regain compliance, the company's closing bid price must meet or exceed $1.00 per share for at least 10 consecutive trading days before December 17, 2024.
ClearOne has a 180-day period, until December 17, 2024, to address this issue. If the company manages to lift its stock price above the threshold for the required period, Nasdaq will confirm compliance and the matter will be resolved.
Still, if compliance is not achieved by the deadline, the company may be eligible for an additional 180 days provided it meets other market value and listing standards and submits a plan indicating how it intends to rectify the bid price deficiency, potentially through a reverse stock split.
The company is monitoring its share price and is considering options to regain compliance with the Nasdaq's requirements. Despite this, there is no guarantee that ClearOne will meet the minimum bid price requirement within the initial compliance period or any extension granted by Nasdaq. Failure to comply could lead to delisting, although the company would have the right to appeal any delisting decision to a Nasdaq hearings panel.
This announcement is based on a press release statement and reflects the current situation as per the latest SEC filing by ClearOne. Investors and stakeholders are keeping a close watch on the company's efforts to resolve the situation and maintain its listing on the Nasdaq Capital Market.
In other recent news, ClearOne has announced the appointment of Simon Brewer as the new Chief Financial Officer (CFO). The decision was made by the company's Board of Directors, with Brewer set to assume his new role soon. Brewer, 45, brings a wealth of experience from his previous roles as CFO and Chief Operating Officer for Operation Underground Railroad, Inc. and CFO of Predictive Technology Group, Inc.
He holds the designation of certified public accountant and chartered global management accountant, along with academic credentials from the University of Utah. ClearOne clarified that Brewer has no familial ties with any of the company's directors or executive officers and no material direct or indirect interest in any transactions with ClearOne.
These recent developments follow ClearOne's continued strides in the communication technology industry. Investors and stakeholders are likely to observe closely as Brewer takes the financial helm of the company.
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