Sharing Economy International receives staff deficiency notice from Nasdaq
Sharing Economy International announced that on October 8, the company received a staff deficiency notice from Nasdaq informing the company that it has failed to comply with Nasdaq's shareholder approval requirements. During the period from May 11, 2017 to date, the company entered into approximately one hundred arrangements resulting in the issuance or potential issuance of more than 3M shares to officers, directors, employees, and consultants. The company did not receive shareholder approval for the equity compensation grants, and the shares were not issued from a shareholder approval equity compensation plan. The company is continuing to review its internal records relating to prior issuances, and as information becomes available regarding any shares issued in similar circumstances, the company will notify Nasdaq. The company intends to submit its plan to regain compliance no later than October 26. If the plan is accepted, Nasdaq can grant an extension of up to one hundred eighty calendar days from October 8 to evidence compliance. The company believes that it has otherwise been compliant with its filing obligations pursuant to the Securities Exchange Act of 1934, as amended, including making all appropriate disclosures to the marketplace. The company is currently doing everything possible to cure its deficiencies regarding the rule.