Shares of Ottawa-based tech firm DragonWave (TSX:DWI) (NASDAQ:DRWI) jumped more than 16 per cent Monday morning on the NASDAQ, days after the company’s stock price nearly doubled in value.
The latest rally comes after DragonWave said that its radio technology had been selected by an Australian telecom services provider to upgrade its network. Additionally, in recent days several financial analysts have upgraded their ratings of DragonWave, which sells microwave radio systems to wireless companies.
After closing last week at $4.15 a share, DragonWave’s stock hit $4.84 this morning before slowly settling down, ending at $4.31 - up nearly four per cent.
To put those figures in context, the company’s stock was trading at $2.08 less than a week ago before DragonWave announced that its gear would be used in Sprint’s network densification efforts.
Separately, the company said late on Friday that it had received a letter from the NASDAQ warning the firm 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.
DragonWave said it intends to regain compliance and provide the NASDAQ with a plan ahead of the stock exchange’s Dec. 1 deadline.
It added that the warning has no immediate impact on the listing of the company's common shares.