Boxlight regains compliance with Nasdaq listing standards after equity raise

Boxlight Corporation (NASDAQ:BOXL), a $4.75 billion market cap company with a "GOOD" financial health rating according to InvestingPro, announced Monday that it has regained compliance with Nasdaq Capital Market listing standards, according to a statement based on a recent SEC filing.

On October 8, the company was informed by Nasdaq staff that it now meets requirements related to minimum stockholders’ equity, independent directors, and audit committee composition. The company had previously fallen out of compliance with these standards.

Nasdaq staff stated that Boxlight currently satisfies the minimum stockholders’ equity rule and that the independent director and audit committee matters are now closed. Nasdaq will continue to monitor the company’s compliance with the equity requirement and may consider delisting if Boxlight does not meet the standard at the time of its next periodic report.

Boxlight previously announced on October 3 that it believed it had achieved at least $2.5 million in stockholders’ equity, the minimum required under Nasdaq Listing Rule 5550(b)(1). The company cited several actions that contributed to meeting this threshold, including shareholder approval to increase authorized shares of Class A common stock to 25 million, completion of a $4.0 million common stock offering before fees and expenses, and the exercise of warrants yielding $1.9 million in gross proceeds.

Boxlight also reported an agreement to modify the terms of its Series B Preferred Stock, which it believes allows the stock to be classified as permanent equity, and noted the conversion of its Series C Preferred Stock into common stock.

The company regained compliance with Nasdaq’s requirements for board independence on August 14 through the election of new independent directors. As of October 3, Boxlight also met audit committee requirements, with the board concluding that Carine Clark, a director, has the necessary financial experience.

The information in this article is based on a statement from Boxlight Corporation’s recent SEC filing.

In other recent news, Boxlight Corporation has appointed Cherry Bekaert LLP as its new auditor for the fiscal year ending December 31, 2025, following the dismissal of Forvis Mazars, LLP. Forvis Mazars’s audit reports had expressed substantial doubt about Boxlight’s ability to continue as a going concern, although they did not contain any adverse opinions. Meanwhile, Box, Inc. has been the subject of varied analyst ratings. UBS downgraded Box from Buy to Neutral, citing limited near-term upside and adjusted its price target from $42.00 to $36.00. In contrast, DA Davidson reiterated its Buy rating on Box and maintained a $45.00 price target, showing optimism about Box’s growth prospects after the BoxWorks 2025 event. The event featured new product announcements, including generative AI offerings, which UBS noted as having additional monetization potential. DA Davidson also highlighted Box’s raised outlook for the year, attributing it to increased demand for its premium Enterprise Advanced tier.

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