NETLIST,INC. (NASDAQ:NLST) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of ListingItem 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Ruleor Standard; Transfer of Listing.
On July6, 2018, Netlist,Inc. (the “Company”) received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) formally notifying the Company that, based upon the Company’s continued non-compliance with the minimum $35 million market value of listed securities requirement set forth in Nasdaq Listing Rule5550(b)(2)(the “Rule”) as of July2, 2018, and its non-compliance with the alternative listing criteria set forth in the Rule, including the minimum $2.5 million stockholders’ equity requirement (the “Stockholders’ Equity Requirement”), the additional deficiency could serve as a basis for the delisting of the Company’s common stock from The Nasdaq Capital Market and, as such, the Company should present its plan to evidence compliance with the Rulefor review by the Nasdaq Hearings Panel (the “Panel”).
As previously disclosed in the Company’s Current Report on Form8-K, as filed with the Securities and Exchange Commission on April4, 2018, on March29, 2018, the Company received written notice from Nasdaq indicating that, due to the Company’s continued non-compliance with the $1.00 bid price requirement set forth in Nasdaq Listing Rule5550(a)(2)(the “Bid Price Requirement”) as of March26, 2018, the Company’s common stock was subject to delisting unless the Company timely requested a hearing before the Panel.
The Company timely requested a hearing before the Panel and at such hearing presented its plan to evidence compliance with both the Bid Price Requirement and the Stockholders’ Equity Requirement. By decision dated May17, 2018, the Panel granted the Company’s request for continued listing on The Nasdaq Capital Market subject to the Company evidencing compliance with all applicable requirements for continued listing on Nasdaq, including both the Bid Price Requirement and the Stockholders’ Equity Requirement, by no later than September25, 2018.
In accordance with the terms of the Panel’s decision, the Company intends to timely provide an update to the Panel, specifically regarding its plan to evidence compliance with the Stockholders’ Equity Requirement.