Vancouver, BC, Canada - June 18, 2020 - CounterPath Corporation (NASDAQ:CPAH) (TSX:PATH), a global provider of award-winning Unified Communications and Collaboration (UCC) solutions for enterprises and service providers, today announced that it has received a letter from the NASDAQ Stock Market ('NASDAQ') wherein, based on the Company's Form 8-K, dated June 11, 2020, NASDAQ has determined that the Company complies with the Listing Rule 5550(b)(1).
As previously disclosed, on December 16, 2019, the Company received a letter from the listing qualifications department staff of NASDAQ notifying the Company that the stockholders' equity of $1,922,675, as reported in its Quarterly Report on Form 10-Q for the period ended October 31, 2019, was below the minimum stockholders' equity of $2,500,000. The minimum stockholders' equity of $2,500,000 is required for continued listing on the NASDAQ Capital Market as set forth in NASDAQ listing rule 5550(b)(1), and as of December 13, 2019, the Company did not meet the alternatives of market value of listed securities or net income from continuing operations.
As of June 11, 2020, after completion of the $1 million private placement, the Company believes that it has regained compliance with the minimum stockholders' equity requirement as a result of the closing of the Offering.
NASDAQ will continue to monitor the Company's ongoing compliance with the minimum stockholders' equity requirement and, if at the time of its next periodic report for the quarter ended July 31, 2020 the Company does not evidence compliance with the minimum stockholders' equity requirement, the Company may be subject to delisting. At that time, NASDAQ Staff will provide written notification to the Company, which it may then appeal Staff's determination to a Hearings Panel. There can be no assurance that the Company will be able to maintain compliance with the minimum stockholders' equity requirement.
CounterPath Corporation (NASDAQ: CPAH) is revolutionizing how people communicate in today's modern mobile workforce. Its award-winning Bria solutions for desktop and mobile devices enable organizations to leverage their existing PBX or hosted VoIP service to extend seamless and secure unified communications and collaboration to users regardless of their location and network. CounterPath technology meets the unique requirements of several industries, including contact center, retail, warehouse, hospitality, and healthcare verticals. Its solutions are deployed world-wide by 8×8, Airbnb, AmeriSave, BT, Citibank, Comcast, Fusion, Fuze, Liberty Global, Uber, Windstream and others. Learn more at counterpath.com and follow on Twitter @counterpath.
Chief Executive Officer