DragonWave, Inc. (USA) (NASDAQ:DRWI)
DragonWave, Inc. (USA) (NASDAQ:DRWI) has receivied a notification letter from Nasdaq indicating that the company failed to regain compliance with Nasdaq Listing Rule 5550(b)(1). This is after the company failed to maintain the $2,500,000 minimum shareholders’ equity at the end of the, compliance period that was granted to the company. Following the failure to regain compliance, the company may be delisted on May 1, 2017 unless it requests a hearing session with the Nasdaq Listing Qualifications Panel.
DragonWave, Inc. (USA) (NASDAQ:DRWI) will request a hearing with the panel at which it plans to table its plans on how to regain compliance and request a time extension. The Panel has the power to extend the company’s compliance period for an additional 180 days starting April 20. The request will put off any suspension or delisting move pending the panel’s final ruling over the matter as well as the expiry of any other granted to the company. There is no automatic assurance that the company’s request for extension will be granted. The announcement does not affect the trading of the company’s securities on the Toronto Stock Exchange.
In other segment, DragonWave, Inc. (USA) (NASDAQ:DRWI)’ Harmony Enhanced MC backhaul solution has been selected by Knoxville Utilities Board’s. KUB is an agency of the City of Knoxville and engaged in offering water, gas, electricity and waste water services. The agency offers its services to residents of Knoxville and other surrounding counties. With this deployment, KUB will seek to increase the available bandwidth, cut on overall cost of operation and maintenance, as well as improve the reliability of its field network. The Harmony Enhanced MC will help in extending KUB’s current wireline/fibre facilities and establish a hybrid wireline and wireless network. The agency will use the platform to setup fiber type networks via wireless using radios to support several channels with high modulation in one form factor.
In a statement, President and CEO of Future Technologies Peter Cappiello said DragonWave, Inc. (USA) (NASDAQ:DRWI)’s Harmony Enhanced MC enabled them to exceed their capacity as well as the reliability values needed by using only 3′ antennas instead of other options that require 6′ antennas. The Harmony Enhanced MC is a high capacity microwave solution that allows customers to get 1 Gbps of uncompressed throughput in one radio and up to 2 Gbps on every radio with the Bandwidth Accelerator+ bulk compression feature.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.