Giga-tronics Incorporated (NASDAQ:GIGA) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Giga-tronics Incorporated (NASDAQ:GIGA) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01 Notice of Extension of Time to Gain Compliance Before Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

 

On May 4, 2017, Giga-tronics Incorporated (the “Company”) received a notification letter from The NASDAQ Stock Market (“NASDAQ”) advising the Company that it has initiated proceedings to delist the Company from NASDAQ for its’ failure to comply with its bid price rule. As previously reported on November 1, 2016, NASDAQ notified the Company that the bid price of its listed security had closed at less than $1 per share over the previous 30 consecutive business days, and, thus, did not comply with Listing Rule 5550(a)(2) (the “Rule”).

 

The Company was provided 180 calendar days, or until May 1, 2017, to regain compliance with the Rule. 

 

Additionally, the Company reported on February 8, 2017, that it received a notification letter from NASDAQ advising the Company of its failure to comply with the required minimum of either $2,500,000 in shareholders’ equity, $35,000,000 market value of listed securities or $500,000 net income from continuing operations for continued listing on The Nasdaq Capital Market, to NASDAQ listing rule 5550(b). NASDAQ listing rules provided the Company with 45 calendar days in which to submit a plan to regain compliance. The Company submitted a plan on March 24, 2017, and NASDAQ notified the Company on April 20, 2017 of NASDAQ’s acceptance of the plan and the granting of an extension through August 7, 2017; however, because the Company was not able to comply with the Rule, NASDAQ has determined that the Company is not eligible for a second 180 calendar day extension to comply with the Rule.

 

The Company may request an appeal of this determination or be scheduled for delisting; the Company plans on appealing the determination before the NASDAQ deadline. If the Company fails to request an appeal of this determination, NASDAQ has advised the Company that its securities will be scheduled for delisting from the Capital Market and suspended as of the opening of business on May 15, 2017.

 

There can be no assurance that the Company’s plans to comply with the required bid price, minimum shareholders’ equity, market value of listed securities or net income from continuing operations will be successful. There can also be no assurance that the Company’s appeal of the determination would be successful. If the Company’s Common Stock ceases to be listed for trading on the Nasdaq Capital Market, the Company expects that its Common Stock would be traded on the Over-the-Counter Bulletin Board on or about the same day.

 

 
 
 

 

 


About Giga-tronics Incorporated (NASDAQ:GIGA)

Giga-tronics Incorporated (Giga-tronics) includes the operations of the Giga-tronics Division and Microsource Inc. (Microsource). The Company operates through two segments: Giga-tronics Division and Microsource. Giga-tronics segment designs, manufactures and markets the Advanced Signal Generator (ASG) for the electronic warfare market and switching systems that are used in automatic testing systems primarily in aerospace, defense and telecommunications. The Company’s Giga-tronics segment produces modular signal sources, up-converters, receivers and down-converters in the AXIe format covering a radio frequency (RF) range of 100 megahertz to 18 gigahertz. The end user markets for these products are divided into three segments: RADAR Target Generation, Threat simulation and Surveillance. Microsource primarily develops and manufactures Yttrium, Iron, Garnet (YIG) radio detection and ranging (RADAR) filters used in fighter jet aircraft for two prime contractors.

Giga-tronics Incorporated (NASDAQ:GIGA) Recent Trading Information

Giga-tronics Incorporated (NASDAQ:GIGA) closed its last trading session down -0.020 at 0.770 with 17,136 shares trading hands.

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