Sonendo, Inc. (NYSE: SONX) (“Sonendo” or the “Company”), a leading dental technology company and developer of the GentleWave® System, today announced that, on November 15, 2023, it received a notice from the New York Stock Exchange (the “NYSE”) that the Company was no longer in compliance with the NYSE continued listing standards set forth in Section 802.01B of the NYSE’s Listed Company Manual (“Section 802.01B”) due to the Company’s average global market capitalization over a consecutive 30 trading-day period being less than $50 million and its stockholders’ equity being less than $50 million.
As set forth in the notice, as of November 14, 2023, the 30 trading-day average global market capitalization of the Company was approximately $15.5 million and the Company’s last reported stockholders’ equity as of September 30, 2023 was approximately $37.8 million.
The Company has notified the NYSE that it intends to submit a plan to regain compliance within 45 days of the notice received on November 15, 2023 advising the NYSE of definitive action it has or will take to regain compliance. If the NYSE accepts the Company’s plan, the Company’s common stock, par value $0.001 per share (the “Common Stock”), may continue to be listed and traded on the NYSE during the 18-month cure period, subject to the Company’s pending NYSE appeal and hearing determination.
On November 21, 2023, the Company received an additional notice from the NYSE that the NYSE suspended trading of, and commenced proceedings to delist, the Common Stock, effective at the opening of business Eastern Standard Time on November 22, 2023. This suspension is being made because the Company has not complied with Section 802.01B, which requires listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15 million. The Board of Directors and management of the Company intends to take all advisable actions in order to maintain its listing on the NYSE and will appeal the NYSE’s decision.
In anticipation of the suspension of trading of the Common Stock on NYSE, the Company applied to trade its Common Stock on the OTCQX® Best Market (the “OTCQX”), the highest market tier operated by the OTC Markets Group Inc. and will commence trading on the OTCQX on November 22, 2023 under the symbol “SONX.” For quotes or additional information on the OTCQX, please visit otcmarkets.com.
The transition to the OTCQX will not affect the Company’s business operations. The Company intends to continue to operate in strict compliance with SEC rules and regulations, including filing quarterly financial statements, having independently audited financials, and maintaining an independent Board of Directors, and follow best corporate governance practices of a public company.
