Ottawa’s DragonWave gets extension from NASDAQ to meet listings requirement

Kanata tech firm DragonWave (TSX:DWI) (NASDAQ:DRWI) says it’s received more time from U.S. regulators to bring the company back into compliance with NASDAQ’s rules.

The company, which makes networking equipment for wireless communications firms, said in late October that it received notification from the NASDAQ that it no longer met minimum listing requirements, specifically maintaining at least $2.5 million in shareholders' equity.

The company reported shareholders' equity of $1,662,000 for the period ended Aug. 31, 2016.

Failure to meet the $2.5-million requirement could result in DragonWave being delisted.

The company previously said it intends to regain compliance and provide the NASDAQ with a plan ahead of the stock exchange’s Dec. 1 deadline.

DragonWave did not release details of how it plans to regain compliance ahead of the new April 17 deadline.

DragonWave’s shares spiked in October on news that its equipment would be used in Sprint’s network densification efforts.

Since then, however, the company’s stock price has been on a gradual decline, losing a third of its value over the past seven weeks.

DragonWave shares were up 3.3 per cent to $2.84 in midday trading today on the NASDAQ.