Benzinga | Aug 19, 2020 08:34AM EDT

Pareteum Announces Receipt Of Nasdaq Compliance Notifications

NEW YORK, Aug. 19, 2020 /PRNewswire/ --Pareteum Corporation (NASDAQ:TEUM), a global cloud communications platform company, announced that on August 14, 2020, Pareteum Corporation (the "Company") received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the bid price of its listed security had not regained compliance with the $1 per share requirement for continued listing on The Nasdaq Capital Market, as set forth in Listing Rule 5550(a)(2) (the "Rule"). In accordance with Listing Rule 5810(c)(3)(A), the Company was previously provided 180 calendar days to regain compliance with the Rule. Subsequently, on April 16, 2020, Nasdaq filed an immediately effective rule change with the Securities and Exchange Commission. As a result, companies in bid price compliance periods remained at that same stage of the process until July 1, 2020. Accordingly, since the Company had 44 calendar days remaining in its bid price compliance period as of April 16, 2020, upon reinstatement of the Rule, the Company was provided 44 calendar days from July 1, 2020, or until August 13, 2020, to regain compliance.

The Company has not regained compliance with the Rule and the Staff determined not to afford the Company a second 180-day period. Specifically, the Staff noted that they do not believe it is possible for the Company to cure the deficiency, and that the Company has not evidenced $5,000,000 in stockholders' equity in a recent public filing. In that regard, the Company is under a Panel exception dated July 6, 2020, which requires the Company to file all of its delinquent periodic reports by October 30, 2020. Given that the Company did not timely file its Form 10-Q for the period ended June 30, 2020, on August 12, 2020, the Staff also advised the Company that the late filing, which was anticipated in connection with the plan of compliance previously accepted by the Panel, constitutes an additional basis for delisting pursuant to Listing Rule 5250(c)(1), as does the bid price issue. The Company has been afforded the opportunity to update the Panel on its plan for becoming current in filing prior to the end of the exception period on October 30, 2020, and to request additional time for regaining compliance with the bid price requirement and the Company intends to do so. Should the Company fail to timely regain compliance, trading in its securities would be suspended resulting in trading moving to the OTC market.