Digiliti Money receives noncompliance notice from Nasdaq
Digiliti Money announced that on September 11, the company received a notice from the listing qualifications department of Nasdaq indicating the company's noncompliance with Nasdaq's majority independent board requirement and the continued listing standards set forth in Nasdaq's Listing Rules 5250, 5605, 5605, 5605() and 5605. This notice of noncompliance is based on the company's failure to timely file its quarterly report on Form 10-Q for the period ended June 30 and comply with Nasdaq's majority independent board requirement and the audit committee, compensation committee, and nominating committee composition requirements. Digiliti Money previously disclosed the departure of certain directors of the company's board in its current reports on Form 8-K filed with the SEC on September 1 and September 7. Digiliti Money has until September 20 to submit a plan to Nasdaq outlining the company's proposed actions to regain compliance with the continued listing standards. The company's board has determined that, while regaining compliance with some of Nasdaq's continued listing requirements can be cured promptly, other listing requirements would require significant funds and resources. The board has also determined that allowing the delisting of the company's stock from Nasdaq would actually facilitate financing, M&A, and corporate restructuring opportunities that would otherwise be more time consuming and costly to complete while on Nasdaq. If the company is delisted from Nasdaq, it intends on applying for listing on one of the OTCQB, QX or PK markets once it satisfies the appropriate financial reporting and other listing qualification requirements of such market.