Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
On May 15, 2020, Dynatronics Corporation (the "Company") received written notice
("Letter") from the Listing Qualifications Department of the Nasdaq Stock Market
LLC ("Nasdaq")informing the Company that the closing bid price of its common
stock (the "Common Stock") for the last 30 consecutive business days prior to
the date of the Letter failed to comply with the $1.00 per share minimum bid
price required for continued listing on The Nasdaq Capital Market under Nasdaq
Listing Rule 5550(a)(2). The Letter has no immediate effect on the Common Stock
listing or trading on Nasdaq.
The Letter indicated that, due to extraordinary and unprecedented turmoil in
U.S. and world financial markets, Nasdaq has determined to toll the compliance
period for the minimum bid price requirement under Rule 5450(a)(1) through
June 30, 2020. As a result, the Company will be provided with a compliance
period of 180 calendar days beginning July 1, 2020, and the new date by which
the Company has to gain compliance with the minimum bid price requirement is
December 28, 2020 (the "Compliance Date") pursuant to Nasdaq Listing Rule
5810(c)(3)(A). If at any time before the Compliance Date, the closing bid price
of the Common Stock is at least $1.00 per share for a minimum of ten consecutive
business days, Nasdaq will provide written notification that the Company has
achieved compliance with the minimum bid requirement.
If the Company does not regain compliance by the Compliance Date, it may be
eligible for an additional grace period, provided it meets the applicable market
value of publicly held shares requirement for continued listing, and all other
applicable Nasdaq standards for initial listing on the Nasdaq Capital Market,
with the exception of bid price.
The Company intends to actively monitor the bid price for its common stock
between now and the Compliance Date, and will consider available options to
resolve the deficiency and regain compliance with Nasdaq's minimum bid price
requirement but has not yet determined to take any other action in response to
the notice.
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