Item 3.01. |
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
|
Minimum Bid Price
On April 3, 2024, Banzai International, Inc. (the Company) received a letter from the staff at The Nasdaq Stock Market
LLC (Nasdaq) notifying the Company that, for the 30 consecutive business days prior to the date of the letter, the Companys Class A common stock, par value $0.0001 per share (the Common Stock), did
not meet the minimum bid price of $1.00 per share required for continued listing on The Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1). The letter is only a notification of deficiency, not of imminent delisting, and has no current
effect on the listing or trading of the Companys securities on Nasdaq.
In accordance with Nasdaq listing rule 5810(c)(3)(A), the
Company has 180 calendar days, or until September 30, 2024 (the Bid Price Compliance Period), to regain compliance. The letter notes that to regain compliance, the Companys Common Stock must maintain a minimum closing
bid price of $1.00 for at least ten consecutive business days at any time during the Bid Price Compliance Period. In the event the Company does not regain compliance by the end of the Bid Price Compliance Period, the Company may be eligible for
additional time to regain compliance. To qualify for additional time, the Company must (i) submit a transfer application to transfer to the Nasdaq Capital Market, (ii) meet the continued listing requirement for the market value of its
publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement and (iii) provide written notice of its intention to cure the deficiency during the second compliance
period by effecting a reverse stock split, if necessary. If the Company meets these requirements, the Company may be granted an additional 180 calendar days to regain compliance. However, if it appears to Nasdaq that the Company will be unable to
cure the deficiency, or if the Company is not otherwise eligible for the additional cure period, Nasdaq will provide written notice to the Company that its securities are subject to delisting. At that time, the Company may appeal any such delisting
determination to a hearings panel.
The Company intends to actively monitor the Companys bid price between now and
September 30, 2024, and may, if appropriate, evaluate available options to resolve the deficiency and regain compliance with the minimum bid price requirement. While the Company is exercising diligent efforts to maintain the listing of its
securities on Nasdaq, there can be no assurance that the Company will be able to regain or maintain compliance with Nasdaq listing standards.
Minimum
Market Value of Publicly Held Shares
On April 3, 2024, the Company also received a letter from the staff at Nasdaq notifying the
Company that, for the 30 consecutive business days prior to the date of the Letter, the Companys Market Value of Publicly Held Shares (MVPHS) was below the minimum of $15 million required for continued listing on The
Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(b)(2)(C). The letter is only a notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Companys securities on Nasdaq.
In accordance with Nasdaq listing rule 5810(c)(3)(D), the Company has 180 calendar days, or until September 30, 2024 (the MVPHS
Compliance Period), to regain compliance. The letter notes that to regain compliance, the Companys MVPHS must close at or above $15 million for a minimum of ten consecutive business days during the MVPHS Compliance Period. The
letter further notes that if the Company is unable to satisfy the MVPHS requirement prior to such date, the Company may be eligible to transfer the listing of its securities to The Nasdaq Capital Market (provided that the Company then satisfies the
requirements for continued listing on that market). If the Company does not regain compliance by the end of the MVPHS Compliance Period, Nasdaq staff will provide written notice to the Company that its securities are subject to delisting. At that
time, the Company may appeal any such delisting determination to a hearings panel.
The Company intends to actively monitor the
Companys MVPHS between now and September 30, 2024, and may, if appropriate, evaluate available options to resolve the deficiency and regain compliance with the MVPHS requirement. While the Company is exercising diligent efforts to
maintain the listing of its securities on Nasdaq, there can be no assurance that the Company will be able to regain or maintain compliance with Nasdaq listing standards.