In addition to the minimum bid price requirement, the continued listing rules of the NASDAQ require us to meet at least one of the following listing standards: (i) stockholders’ equity of at least $2.5 million, (ii) market value of listed securities (calculated by multiplying the daily closing bid price of our securities by our total outstanding securities) of at least $35 million or (iii) net income from continuing operations (in the latest fiscal year or in two of the last three fiscal years) of at least $500,000 (collectively, the “Additional Listing Standards”). If we fail to meet at least one of the Additional Listing Standards, our Common Shares may be subject to delisting after the expiration of the period of time, if any, that we are allowed for regaining compliance.
On April 8, 2020, we received a letter from the Listing Qualifications Staff of the NASDAQ, notifying us that, based upon the net loss for the fiscal year ended December 31, 2019, the Company no longer satisfies the minimum net income requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(3) and does not otherwise satisfy the alternative requirements of market value of listed securities or stockholders’ equity. The Company timely submitted a plan to regain compliance with Nasdaq Listing Rule 5550(b)(3), and on June 3, 2020 the Staff granted the Company an extension of 180 days, through October 5, 2020, to evidence compliance with this requirement. The Company is pursuing a number of initiatives to increase stockholders’ equity, including, among other things, this offering and the registration of the common shares underlying certain share purchase warrants, such registration was effective on June 16, 2020, the completion of which are expected to enable it to achieve compliance with the minimum stockholders’ equity requirement by no later than October 5, 2020 and to thereafter maintain compliance with the listing requirements.
https://app.quotemedia.com/data/...ateFiled=2020-07-06&CK=1113423
5550. Continued Listing of Primary Equity Securities
A Company that has its Primary Equity Security listed on the Capital Market must continue to meet all of the requirements set forth in Rule 5550(a) and at least one of the Standards set forth in Rule 5550(b). Failure to meet any of the continued listing requirements will be processed in accordance with the provisions set forth in the Rule 5800 Series. (a) Continued Listing Requirements for Primary Equity Securities: (1) At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid; (2) Minimum bid price of at least $1 per share;
(3) At least 300 Public Holders;
(4) At least 500,000 Publicly Held Shares; and (5) Market Value of Publicly Held Shares of at least $1 million. (b) Continued Listing Standards for Primary Equity Securities: (1) Equity Standard: Stockholders' equity of at least $2.5 million;
(2) Market Value of Listed Securities Standard: Market Value of Listed Securities of at least $35 million; or (3) Net Income Standard: Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.
https://listingcenter.nasdaq.com/rulebook/nasdaq/...#nasdaq-rule_5450
As at March 31, 2020 |
|
|
| Actual |
|
| As Adjusted |
| Number of Common Shares issued and outstanding |
|
| 23,472,771 |
|
|
| 50,139,437 |
| Cash and cash equivalents |
| $ | 9,182 |
|
| $ | 19,695 |
| Shareholders’ equity: |
|
|
|
|
|
|
|
| Share capital |
| $ | 226,413 |
|
| $ | 236,926 |
| Other capital
|
| $ | 89,694 |
|
| $ | 89,694 |
| Deficit |
| $ | (314,724 | ) |
| $ | (314,724 | ) | Accumulated other comprehensive income |
| $ | 304 |
|
| $ | 304 |
| Total shareholders’ equity and total capitalization |
| $ | 1,687 |
|
| $ | 12,200
|
|
|