Sequans Receives Notice of Non-Compliance with NYSE Trading Share Price and Market Capitalization Listing Rules

Rhea-AI Summary

Sequans Communications (NYSE: SQNS) has received a notice of non-compliance from the NYSE on June 5, 2025, due to failing to meet listing requirements under Section 802.01B. The company's average global market capitalization fell below $50 million over a 30-day trading period while simultaneously having stockholders' equity below $50 million. While this notice doesn't trigger immediate delisting, Sequans has 90 days to submit a business plan to the NYSE demonstrating how it will regain compliance within 9 months. The NYSE will review the plan within 45 days to determine if it's reasonable. During this period, Sequans' ADSs will continue trading on the NYSE, subject to compliance with other listing standards and periodic review of progress.

Positive

• Company maintains NYSE listing during the cure period
• Company has 9 months to regain compliance
• Management actively working on compliance plan

Negative

• Market capitalization fallen below $50 million requirement
• Stockholders' equity below $50 million threshold
• Risk of potential delisting if compliance plan fails
• Uncertainty around ability to meet NYSE requirements within cure period

Insights

Capital Markets Compliance Expert

Sequans faces NYSE delisting risk due to market cap falling below $50M, with 9 months to remedy after submitting plan.

Sequans Communications has received a formal notice from the NYSE for failing to maintain compliance with two critical listing requirements: the company's average global market capitalization has fallen below $50 million over 30 consecutive trading days, while simultaneously having stockholders' equity below $50 million.

This dual deficiency triggers Section 802.01B of the NYSE Listed Company Manual, placing Sequans in a precarious position regarding its continued listing status. While no immediate delisting action is taking place, the company now faces a structured remediation timeline:

• 90 days to submit a credible business plan to the NYSE
• 45 days for NYSE review of the submitted plan
• If approved, a 9-month cure period to regain compliance

During this period, Sequans' American Depositary Shares (ADSs) will continue trading, conditional upon meeting other NYSE listing standards and passing periodic reviews of its remediation progress. The notice represents a significant warning signal about the company's diminishing market value and equity position.

For context, being placed on non-compliance notice often indicates underlying financial challenges. The requirement to simultaneously address both market capitalization and stockholders' equity presents a particularly difficult hurdle, as improving one metric doesn't automatically resolve the other. Companies in this position typically must pursue strategic alternatives like reverse stock splits, significant cost-cutting measures, capital raising, or even potential merger/acquisition scenarios to regain compliance.

Paris, France--(Newsfile Corp. - June 23, 2025) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans") (the "Company"), a leading developer and provider of 5G/4G solutions for IoT devices, today announced that on June 5, 2025 it received a notice (the "Notice") from the New York Stock Exchange (the "NYSE") informing the Company that it is no longer in compliance with Section 802.01B of the NYSE Listed Company Manual.

The Company was notified by the NYSE that it was not in compliance with Section 802.01B (the "Market Cap Deficiency") because it had an average global market capitalization over a consecutive 30 trading-day period below $50,000,000 and, at the same time, stockholders' equity less than $50,000,000. The Notice does not result in the immediate delisting of the Company's ADSs from the NYSE. The Company has notified the NYSE that it intends to cure the Market Cap Deficiency and return to compliance with the NYSE's continued listing standard.

In accordance with applicable NYSE procedures, the Company has 90 days from receipt of the Notice to submit a business plan advising the NYSE of the definitive action(s) the Company has taken, or is taking, that would bring it into compliance with continued listing standards within 9 months of receipt of the Notice (the "Market Cap Cure Period"). The NYSE will review the plan and, within 45 days of its receipt, determine whether the Company has made a reasonable demonstration of an ability to conform to the relevant standards in the 9-month period. If the NYSE accepts the plan, the Company's ADSs will continue to be listed and traded on the NYSE during the 9-month period, subject to the Company's compliance with the other continued listing standards of the NYSE and continued periodic review by the NYSE of the Company's progress with respect to its plan. Sequans is currently evaluating its available options and developing a plan to regain compliance with the minimum global market capitalization requirement.

The Company's ADSs will continue to be listed and trade on the NYSE during the Market Cap Cure Period, subject to the Company's compliance with other NYSE continued listing standards.

Forward-Looking Statements

This press release includes forward-looking statements as defined under federal law, including, but not limited to, those related to the Company's plans to regain compliance with the NYSE continued listing standards. These forward-looking statements are generally identified by the words "intend," "will," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to significant risks, assumptions and uncertainties. Known material factors that could cause the Company's actual results to differ materially from the results contemplated by such forward-looking statements are described in the forward-looking statements and risk factors in the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2024 and those risk factors set forth from time-to-time in other filings with the Securities and Exchange Commission. The Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.

About Sequans

Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Switzerland, Israel, Hong Kong, Singapore, Finland, Taiwan and China.

Visit Sequans at sequans.com and follow us on LinkedIn and X.

Sequans investor relations: David Hanover/Gerrick Johnson, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com

Sequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256450

FAQ

Why did Sequans Communications (SQNS) receive a NYSE non-compliance notice?

Sequans received the notice because its average global market capitalization fell below $50 million over a 30-day trading period while having stockholders' equity less than $50 million, violating NYSE Section 802.01B requirements.

Will Sequans (SQNS) be immediately delisted from the NYSE?

No, Sequans will not be immediately delisted. The company has 90 days to submit a compliance plan and 9 months to regain compliance while continuing to trade on the NYSE.

What must Sequans (SQNS) do to maintain its NYSE listing?

Sequans must submit a business plan within 90 days showing how it will achieve a market capitalization or stockholders' equity above $50 million within 9 months, and the plan must be approved by NYSE.

How long does Sequans (SQNS) have to regain NYSE compliance?

Sequans has 9 months from the receipt of the notice (June 5, 2025) to regain compliance with NYSE listing standards, provided their plan is accepted by the exchange.

What happens if Sequans (SQNS) fails to meet NYSE requirements within the cure period?

If Sequans fails to meet NYSE requirements within the 9-month cure period, the company could face delisting from the New York Stock Exchange.