Professional Diversity Network, Inc. (NASDAQ:IPDN) 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
As previously disclosed, on April 24, 2019 Professional Diversity Network, Inc. (the “Company”) received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it is not 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 Company’s Annual Report on Form 10-K for the period ended December 31, 2018, the Company reported stockholders’ equity of $(1,110,788), which is below the minimum stockholders’ equity required for continued listing to Nasdaq Listing Rule 5550(b)(1).
As previously disclosed, on July 16, 2019 Professional Diversity Network, Inc. (the “Company”) received a letter from Nasdaq (the “Nasdaq Extension Letter”) stating that the Nasdaq staff granted the Company an extension until September 16, 2019 to regain compliance with NASDAQ Listing Rule 5550(b).
Since the receipt of the Nasdaq Extension Letter, the Company has closed the following private placement transactions (the “Private Placements”): (i) on August 6th, 2019 the Company closed a private placement with an individual investor based in the People’s Republic of China (“China”), to which the Company issued 1,142,857 shares of the Company’s common stock for $1.75 per share for gross proceeds of $2,000,000; (ii) on September 10th, 2019, the Company closed a private placement with an individual investor based in China, to which the Company issued 442,830 shares of the Company’s common stock for $1.58 per share for gross proceeds of $699,672.55; (iii) on September 10th, 2019 the Company closed a private placement with an individual investor based in China, to which the Company issued 189,873 shares of the Company’s common stock for $1.58 per share for gross proceeds of $300,000; and (iv) on September 13th, 2019 the Company closed a private placement with EGBT Foundation Ltd., a Singapore public company limited by guarantee (“EGBT”), to which EGBT purchased 1,265,823 shares of common stock of the Company at a price of $1.58 per share for gross proceeds of $2,000,000.00. The shareholders’ equity of the Company as of September 16th, 2019 is $3,662,223. The Company believes that as of September 16th, 2019 the Company has regained compliance with NASDAQ Listing Rule 5550(b) as a result of the Private Placements.
Nasdaq will continue to monitor the Company’s ongoing compliance with the stockholders’ equity requirement and, if at the time of its next periodic report the Company does not evidence compliance, it may be subject to delisting. The Company intends to pursue other transactions in the near term, including without limitation, equity financing transactions and/or acquisitions, to further shore up the Company’s shareholders’ equity.
About Professional Diversity Network, Inc. (NASDAQ:IPDN)
Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.