Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
Nasdaq MVLS Notice
On January 3, 2023, QualTek Services Inc. (the "Company") received a letter (the
"MVLS Notice") from the Listing Qualifications Department (the "Staff") of The
Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that for the last 30
consecutive business days prior to the date of the MVLS Notice, the Company's
Minimum Value of Listed Securities ("MVLS") was less than $35.0 million, which
does not meet the requirement for continued listing on The Nasdaq Capital
Market, as required by Nasdaq Listing Rule 5550(b)(2) (the "MVLS Rule"). In
accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Staff has provided the
Company with 180 calendar days, or until July 3, 2023, to regain compliance with
the MVLS Rule. The MVLS Notice has no immediate effect on the listing of the
Company's securities on The Nasdaq Capital Market.
If the Company regains compliance with the MVLS Rule, the Staff will provide
written confirmation to the Company and close the matter. To regain compliance
with the MVLS Rule, the Company's MVLS must meet or exceed $35.0 million for a
minimum of ten consecutive business days during the 180-day compliance period
ending on July 3, 2023. In the event the Company does not regain compliance with
the MVLS Rule prior to the expiration of the compliance period, it will receive
written notification that its securities are subject to delisting. At that time,
the Company may appeal the delisting determination to a Hearings Panel.
The Company will continue to monitor its MVLS and consider its available options
to regain compliance with the MVLS Rule. However, there can be no assurance that
the Company will be able to regain compliance with the MVLS Rule.
Nasdaq Minimum Bid Price Notice
On January 5, 2023, the Company received a letter (the "Minimum Bid Price
Notice") from the Staff notifying the Company that its Class A common stock,
$0.0001 par value per share (the "Common Stock"), fails to comply with the $1
minimum bid price required for continued listing on The Nasdaq Capital Market
under Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Rule") based upon
the closing bid price of the Common Stock for the 30 consecutive business days
prior to the date of the notice from Nasdaq.
The Minimum Bid Price Notice has no immediate effect on the listing of the
Common Stock on The Nasdaq Capital Market and, at this time, the Common Stock
will continue to trade on The Nasdaq Capital Market under the symbol "QTEK".
Pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(ii), the Company has been provided
an initial compliance period of 180 calendar days, or until July 5, 2023, to
regain compliance with the Minimum Bid Price Rule. To regain compliance, the
closing bid price of the Common Stock must meet or exceed $1.00 per share for a
minimum of ten consecutive business days prior to July 5, 2023.
If the Company is unable to regain compliance with the Minimum Bid Price Rule by
July 5, 2023, the Company may be eligible for an additional 180-day compliance
period to demonstrate compliance with the Minimum Bid Price Rule. To qualify,
the Company will be required to meet the continued listing requirement for
market value of publicly held shares and all other initial listing standards for
The Nasdaq Capital Market, with the exception of the Minimum Bid Price Rule, and
will need to provide written notice to Nasdaq of its intention to cure the
deficiency during the second compliance period. If the Company does not qualify
for the second compliance period or fails to regain compliance during the second
180-day period, Nasdaq will notify the Company of its determination to delist
the Common Stock, at which point the Company would have an opportunity to appeal
the delisting determination to a Hearings Panel.
The Company will continue to monitor the bid price of the Common Stock and
consider its available options to regain compliance with the Minimum Bid Price
Rule. However, there can be no assurance that the Company will be able to regain
compliance with the Minimum Bid Price Rule.
© Edgar Online, source Glimpses