Sequans receives NYSE non-compliance notice over market ca

Published 23/06/2025, 11:14
Sequans receives NYSE non-compliance notice over market ca

PARIS - Sequans Communications S.A. (NYSE:SQNS), currently trading at $1.93 with a market capitalization of $49 million, has received a notice from the New York Stock Exchange (NYSE) indicating it no longer complies with continued listing standards, according to a press release statement issued Monday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.

The notice, received on June 5, 2025, cites non-compliance with Section 802.01B of the NYSE Listed Company Manual as the company’s average global market capitalization fell below $50 million over a consecutive 30 trading-day period while simultaneously having stockholders’ equity less than $50 million. Despite these challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.94 and holds more cash than debt on its balance sheet.

The notification does not result in immediate delisting of Sequans’ American Depositary Shares (ADSs). The company has informed the NYSE it intends to address the market capitalization deficiency and has 90 days to submit a business plan outlining actions to regain compliance within a nine-month cure period.

If the NYSE accepts the plan, Sequans’ ADSs will continue trading during the nine-month period, subject to compliance with other listing standards and periodic NYSE review of the company’s progress.

Sequans, a developer of 5G/4G solutions for IoT devices, is currently evaluating options to regain compliance with the minimum global market capitalization requirement.

The company’s shares will continue to be listed and traded on the NYSE during the cure period, provided Sequans maintains compliance with other NYSE continued listing standards.

In other recent news, Sequans Communications reported mixed financial results for the first quarter of 2025, with revenues reaching $8.1 million, marking a 33.6% increase from the same period last year but a 27.1% decline from the previous quarter. The company experienced a net loss of $7.3 million, which showed improvement from the $11.8 million loss in Q1 2024. Sequans’ financial outlook for the second quarter of 2025 anticipates revenues between $8 million and $9 million. In a strategic move, Sequans has regained compliance with the New York Stock Exchange’s listing standards after previously facing non-compliance issues. This was achieved through strategic actions, including a reverse stock split and a $200 million transaction that enhanced the company’s market capitalization and stockholders’ equity. CEO Georges Karam expressed confidence in the company’s growth prospects and innovation in the IoT space. Sequans remains focused on expanding its revenue pipeline and anticipates accelerated revenue growth in the latter half of 2025 and into 2026. The company’s forward-looking statements highlight potential risks and uncertainties in achieving these projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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