The warning, issued last week, said Hancock Jaffe did not have the minimum of $2.5 million in stockholders’ equity to merit its listing on the exchange. According to the SEC filing, the company’s total stockholders’ equity was approximately $989,940 on Dec. 31, 2019. Hancock Jaffe is now required to submit a plan to regain compliance by no later than May 4, 2020.
The company said it intends to submit a compliance plan in a timely manner and, if NASDAQ accepts the plan, it may grant Hancock Jaffe an extension of up to 180 calendar days from the date of the notice (March 20, 2020) to confirm its compliance with the equity requirement.
Should Hancock Jaffe not have its plan accepted, it may request a hearing, at which it would present its plan to a NASDAQ hearings panel and request the continued listing of its securities on the market pursuant to and pending the completion of its plan.
Hancock Jaffe said in the filing that it anticipates regaining compliance with the requirement prior to or during the extension period, but there can be no assurance that this will happen.
Hancock Jaffe did not respond to multiple requests for comment.