Ottawa-based DragonWave announced Wednesday its common shares have been transferred from Nasdaq’s global market to its capital market effective Aug. 28.
The packet microwave radio system provider received notice in the spring that its closing bid price had been below US$1 for 30 straight days. The company was given until Aug. 31 to remedy the situation.
The transfer is a result of DragonWave’s failure to boost its stock price. The company now has an additional 180 days to get its stock value over US$1.
Between now and Feb. 29, 2016, DragonWave shares must close above that mark for between 10 and 20 consecutive days, a number that will be determined by Nasdaq staff. If the company fails to meet that requirement, it risks having its shares delisted.
DragonWave shares were trading at 21 cents per share on the Nasdaq exchange late Wednesday.
It’s just the latest bump in the road for DragonWave, which recently had an unexpected glitch in the rollout of product to a new carrier in India. The firm has also seen revenue dwindle from its Nokia channel and risks losing more sales now that Nokia, its No. 1 customer, has acquired Alcatel-Lucent, a DragonWave competitor.
The company’s chief financial officer, Russell Frederick, announced his resignation late last month, citing personal reasons.