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In a Form 8-K, Staffing 360 Solutions, Inc. announced that on June 3, 2020, it received a letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC notifying the Company that it was 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 $2,500,000. Further, as of June 3, 2020, the Company did not meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations.
In accordance with the Nasdaq Listing Rules, the Company was afforded the opportunity to submit a plan to regain compliance with the minimum stockholders’ equity standard. Based on the Company’s submissions, the Staff granted the Company an extension to regain compliance with Rule 5550(b)(1) until November 30, 2020.
Still, on December 1, 2020, the Company received notice that because it had not met the terms of the extension, the Company’s common stock would be subject to delisting from The Nasdaq Capital Market, unless the Company timely requests a hearing before a Nasdaq Hearings Panel. Accordingly, the Company intends to timely request a hearing before the Panel, which will automatically stay any suspension or delisting action pending the issuance of a decision by the Panel following the hearing and the expiration of any additional extension period granted by the Panel.
There can be no assurance, however, that the Panel will grant the Company a further extension or that the Company will be able to ultimately regain compliance with the applicable listing requirements. "Should a delisting occur, an investor would likely find it more difficult to buy or sell the Company’s common stock or to obtain accurate quotations as to the value of the Company’s common stock, and the Company’s ability to raise future capital through the sale of its common stock could also be limited."
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