MONSTER DIGITAL, INC. (NASDAQ:MSDI) 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 Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. |
OnApril 17, 2017, Monster Digital, Inc. (the Company) received a
letter from Nasdaq notifying the Company that it is no longer in
compliance with the minimum stockholders equity requirement for
continued listing on the Nasdaq Capital Market. Nasdaq Listing
Rule 5550(b)(1) requires listed companies to maintain
stockholders equity of at least $2.5 million. In the Companys
Annual Report on Form 10-K for the year ended December31, 2016,
the Company reported stockholders equity of $2,488,000, which is
below the minimum stockholders equity required for continued
listing to Nasdaq Listing Rule 5550(b)(1). Further, as ofApril
17, 2017, the Company does not meet the alternative compliance
standards relating to the market value of listed securities or
net income from continuing operations and does not comply with
the Nasdaq Listing Rules.
This notification has no immediate effect on the Companys listing
on the Nasdaq Capital Market. Nasdaq has provided the Company
with 45 calendar days, or untilJune 1, 2017, to submit a plan to
regain compliance with the minimum stockholders equity standard.
If the Companys plan to regain compliance is accepted, Nasdaq may
grant an extension of up to 180 calendar days from the date of
the notification letter, or untilOctober 14, 2017, to evidence
compliance.
The Company is presently evaluating various courses of action to
regain compliance and intends to timely submit a plan to Nasdaq
to regain compliance with the Nasdaq minimum stockholders equity
standard. However, there can be no assurance that the Companys
plan will be accepted or that if it is, the Company will be able
to regain compliance. If the Companys plan to regain compliance
with the minimum stockholders equity standard is not accepted or
if it is and the Company does not regain compliance byOctober 14,
2017, or if the Company fails to satisfy another Nasdaq
requirement for continued listing, Nasdaq staff could provide
notice that the Companys common stock will become subject to
delisting. In such event, Nasdaq rules permit the Company to
appeal the decision to reject its proposed compliance plan or any
delisting determination to a Nasdaq Hearings Panel. Accordingly,
there can be no guarantee that the Company will be able to
maintain its Nasdaq listing.
| Item 7.01 | Regulation FD Disclosure. |
On April 18, 2017, the Company issued a press release regarding
the notice from Nasdaq. A copy of the press release is furnished
herewith as Exhibit 99.1 and is incorporated herein by reference.
The information in this item shall not be deemed filed for
purposes of Section 18 of the Securities Exchange Act of 1934
(the Exchange Act), or otherwise subject to the liabilities of
Section 18, nor shall it be deemed incorporated by reference in
any of the Companys filings under the Securities Act of 1933, as
amended or the Exchange Act, except to the extent, if any,
expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
See the Exhibit Index set forth below for a list of exhibits
included with this Form 8-K.
About MONSTER DIGITAL, INC. (NASDAQ:MSDI)
Monster Digital, Inc. designs and engineers data storage and memory products. The Company is engaged in the design, development and marketing of its products under the Monster Digital brand for use in high-performance computing and consumer and mobile product applications. The Company’s primary product offerings include an action sports camera used in adventure sport, adventure photography and extreme-action videography; a line of ultra-small mobile external memory drive products for Apple iPhone operating system (iOS) devices; On-The-Go Cloud devices, which create a wireless fidelity (Wi-Fi) hot spot for multiple users while simultaneously allowing data to be viewed, played or transferred among the connected storage; a selection of memory storage products consisting of Solid State Drives (SSDs), removable flash memory CompactFlash cards (CF cards), secured digital cards (SD cards) and universal serial bus (USB) flash drives. MONSTER DIGITAL, INC. (NASDAQ:MSDI) Recent Trading Information
MONSTER DIGITAL, INC. (NASDAQ:MSDI) closed its last trading session down -0.07 at 1.03 with 108,573 shares trading hands.
