The stock of SuperCom Ltd. (SPCB) gained in the pre-market after the company announced in a press release about the letter from NASDAQ on minimum bid requirement. The stock of the company was valued at $0.59 at the time of this writing, gaining more than 6.85% from the previously closed value. At the end of the last trading session, the stock closed at $0.55. The volume of the stock traded in the last trading session was approximately 407.85K.
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Reason for the SPCB stock decline
The company in a letter by NASDAQ received a statement that the company was not in compliance with NASDAQ Listing Rule 5550(a)(2). Because between Oct 27 and Dec 10 2021 the company’s closing bid for the common stock was lower than $1 per share for the 32 consecutive days before the notice. The company has forecasted that it will regain compliance within the next 180 days compliance period with a minimum bid price.
The shares of SuperCom Ltd. (SPCB) will continue to trade and be listed on the NASDAQ stock market in the upcoming 180 days of the compliance period. The stock of the company should value equal to or more than $1.00 per share for at least 10 days during the compliance period of 180 days till 13th June 2021.
In any case, if the company did not manage the minimum requirements till 13th June 2021, SuperCom Ltd. (SPCB) will get 180 days of another compliance period. In order to qualify the company will ensure to provide written notice of its intention to compensate the loss during the second compliance period by a reverse stock split with an exception of its minimum bid price requirement.
In case if the company chooses to go for the reverse stock split, they will have to complete it in only 10 business days before the compliance period expires.
Effect on the stock
The stock gained after the news hit the market. Investors might take interest in such a stock that could go up for the short term and result in a short-term capital gain for profits.
Conclusion
The stock of the company is gaining in the pre-market after this notice by NASDAQ. The company is trying to achieve the goal for this time by keeping the bid price above $1.00.
