WiSA Technologies, Inc. (NASDAQ: WISA), a developer of spatial, wireless sound technology for smart devices and home entertainment systems, announced recently that it has received an additional 180-day extension of the compliance period by the NASDAQ stock market. The purpose of the extension is to give the company additional time, until June 20, 2023, to regain compliance with NASDAQ’s minimum bid rule.
Learn all about a WiSA violation of the NASDAQ rule on minimum bid level
It’s been a busy Fall/Early Winter for WiSA, the struggling technology, and licensing company. In November, I told you about the company putting itself up for sale, in the wake of waning momentum. The company hired advisers to review options for some form of recapitalization.
Then in December, I reported that the organization had successfully recapitalized itself thanks to a $7.6 million funding raise in the public market. The capital raise bought the company more runway and it made plans to introduce a new app at the 2023 Consumer Electronics Show that starts this week in Las Vegas.
A New Challenge Threatens Its Financial Foundation
But a new challenge has arisen – the company is in technical violation of its agreement with the NASDAQ stock market and it needed time to cure the violation. At issue, the NASDAQ requires participants on the exchange to maintain a $1 minimum per share bid price. In June, WiSA received a notification from the stock market informing them that they were in violation of this minimum requirement and had 180 days – until December 20, 2022 – to cure the situation or face delisting.
On December 21, 2022, the NASDAQ granted WiSA an additional 180 days extension to attempt to achieve compliance. If between now and no later than June 20, 2023 WiSA stock closes above $1.00 bid price per share for 10 consecutive days, the matter is closed and the company is deemed compliant with the rule. If that does not happen, the stock exchange would proceed with a delisting process – taking WiSA stock off of the market.
WiSA Assures the NASDAQ It Will Cure the Situation
Losing the listing on the stock market would greatly impair WiSA’s ability to easily raise funding through the public offering of stock. So the company most likely very much wants to meet this standard and maintain their listing on the NASDAQ.
To this end, WiSA has told the NASDAQ that they fully intend to cure the situation to achieve compliance within the extended compliance period. If necessary, the company says it will implement a reverse stock split to achieve a greater than $1.00 per share minimum bid price.
Company Assures Investors There is No Imminent Issue
But for now, WiSA wants to assure all investors that there is no imminent issue with their stock on the NASDAQ stock market and it will continue to be traded there.
On Tuesday, January 3, 2023, WiSA stock closed at a share price of $0.0990.
For more information on WiSA visit wisatechnologies.com.