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.
On May 21, 2021, Professional Diversity Network, Inc. (the “Company”) received a letter from 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 Quarterly Report on Form 10-Q for the period ended March 31, 2021, the Company reported stockholders’ equity of $964,288, which is below the minimum stockholders’ equity required for continued listing. Further, as of May 21, 2021, the Company does not meet the alternatives of market value of listed securities or net income from continuing operations.
This notification has no immediate effect on the Company’s listing on the Nasdaq Capital Market. Nasdaq has provided the Company with 45 calendar days, or until July 5, 2021, to submit a plan to regain compliance with the minimum stockholders’ equity standard. If the Company’s 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 until November 17, 2021, to evidence compliance.
As previously disclosed, on April 22, 2021, the Company learned that RMB 18,841,064.15 (approximately $2.87 mm) had been seized from the PDN China Account by Chinese local authorities to satisfy a judgment in favor of the plaintiffs in the Gatewang case. On April 26, 2021, the Company concluded that the seizure of such cash assets is a material reduction of Company assets and reduced the Company’s stockholders’ equity by an equal amount. The Company plans to pursue all possible legal alternatives to have these funds returned to the Company but such return is uncertain at this time.
The Company is presently evaluating other courses of action to regain compliance with the Nasdaq minimum stockholders’ equity standard and intends to timely submit a plan to Nasdaq to regain compliance with that standard.
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.