Business Context and Reporting Period
This Form 6-K filing by Sequans Communications S.A. covers the month of January 2019. The report addresses a regulatory notice received from the New York Stock Exchange (NYSE) regarding the listing status of the Company's American Depositary Shares (ADSs).
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on a compliance issue related to share price rather than financial performance metrics.
Material Changes and Listing Status
- Listing Deficiency: On December 31, 2018, the NYSE notified the Company that its ADSs traded below the minimum average closing price of $1.00 per share for 30 consecutive trading days, violating Rule 802.01C.
- Trading Designation: While the ADSs continue to trade under the symbol "SQNS," they now carry a ".BC" designation to indicate "below compliance" status.
- Cure Period: The Company has a six-month period from the date of notification to regain compliance. Compliance requires a closing share price of at least $1.00 and a 30-day average closing price of at least $1.00 on the last trading day of any calendar month within this period.
Outlook, Risks, and Management Commentary
Management has notified the NYSE of its intent to cure the deficiency. The primary risk identified is the potential suspension and delisting of the ADSs if the Company fails to regain compliance within the six-month cure period. The filing states that the notification has no immediate impact on the ability of the ADSs to be listed and traded, provided other listing requirements are met.
Investor Verification Checklist
- Verify the current trading price and 30-day average of SQNS ADSs to assess progress toward the $1.00 threshold.
- Monitor the Company's press releases for updates on the cure plan or potential reverse stock splits.
- Confirm the exact expiration date of the six-month cure period to understand the timeline for potential delisting.
- Review the attached Exhibit 99.1 (Press Release) for any additional details on management's strategy to address the share price deficiency.