SAN JOSE, Calif. - Quantum (NASDAQ:QMCO) Corporation (NASDAQ:QMCO), a provider of data management solutions, has announced its application for an additional 180-day extension to meet Nasdaq's $1.00 minimum bid price requirement for continued listing. This request follows a notification from Nasdaq on Sunday, March 19, 2024, citing the company's non-compliance with the listing standard.
In response to the notice, Quantum has scheduled a hearing with the Nasdaq Hearings Panel to present its plan for regaining compliance with all listing criteria. While the outcome of the extension request cannot be assured, the company is actively working towards satisfying Nasdaq's requirements within the potential extension period.
Moreover, Quantum disclosed an amendment to its term loan credit and security agreement in a Form 8-K filing today. The amendment mandates that proceeds from asset sales are to be utilized for enhancing financial flexibility, including debt reduction. This move aligns with Quantum's strategic focus on improving working capital, expediting new product launches, and streamlining its business operations.
Quantum is also addressing delays in its financial reporting. The company is revisiting its standalone selling price application under Accounting Standards Codification Topic 606 (ASC 606), which has caused postponements in filing its Form 10-Qs for the second and third fiscal quarters of the fiscal year ending March 31, 2024.
An extensive review of current and historical financial data is underway, with significant progress being made in collaboration with its independent registered public accounting firm. Additional time is being taken to ensure accuracy in the final determination, with a goal to be current with SEC financial reports by May 7, 2024.
Quantum specializes in data management solutions tailored for the AI era, leveraging over 40 years of experience to help customers maximize value from their unstructured data. The company's solutions support a range of industries, including life sciences, government, media and entertainment, research, and industrial technology.
The information in this article is based on a press release statement from Quantum Corporation.
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