Business Context and Reporting Period
This Form 6-K filing by Sequans Communications S.A. covers the month of June 2019, with the report dated June 28, 2019. The filing addresses a regulatory notice regarding the company's continued listing status on the New York Stock Exchange (NYSE).
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 corporate governance and listing compliance matter rather than financial performance data.
Material Changes and Events
- Listing Deficiency: On June 12, 2019, the NYSE notified the company that its American Depositary Shares (ADSs) had an average closing price below $1.00 per share for 30 consecutive trading days, violating Rule 802.01C of the NYSE Listed Company Manual.
- Trading Status: The ADSs continue to trade under the symbol "SQNS" but now carry a ".BC" designation to indicate "below compliance" status.
- Cure Period: The company has been granted a six-month period to regain compliance with the minimum share price requirement.
Outlook, Risks, and Management Commentary
Management has notified the NYSE of its intent to cure the deficiency. To regain compliance within the six-month cure period, the company must achieve a closing share price of at least $1.00 per share on the last trading day of any calendar month during the period, or on the last trading day of the period, along with an average closing price of at least $1.00 over the preceding 30 trading days. If the company fails to meet these criteria, the NYSE will initiate procedures to suspend and delist the ADSs. The filing states that the notification has no immediate impact on the listing, and trading will continue subject to other listing requirements.
Investor Verification Checklist
- Verify the current trading price and 30-day average of SQNS ADSs to assess the likelihood of meeting the $1.00 threshold within the six-month cure period.
- Monitor for any subsequent press releases or filings regarding the company's progress toward regaining compliance.
- Review the attached Exhibit 99.1 (Press Release dated June 28, 2019) for any additional details on the company's strategic response.
- Confirm whether the ".BC" designation affects liquidity or institutional investor eligibility for the stock.