DASAN Zhone Announces Plans for Reverse Stock Split
Oakland, Calif. - Jan. 6, 2017 - DASAN Zhone Solutions, Inc. (NASDAQ: DZSI), a global leader in fiber access transformation for enterprise and service provider networks, announced today that its Board of Directors has authorized a reverse stock split at an exchange ratio of between 1-for-3 and 1-for-5 and a corresponding decrease in the number of authorized shares of the company's common stock on a proportional basis.
As previously announced, on September 12, 2016 the company received a letter from the Nasdaq Stock Market LLC ("Nasdaq") notifying the company that, because it did not satisfy Nasdaq's initial listing standard requiring a minimum bid price of $4 per share (or a minimum closing price of $3 per share for five consecutive trading days or $2 per share for 90 consecutive trading days) at the closing of the acquisition of Dasan Network Solutions, Inc., the company's common stock would be subject to delisting unless the company timely requested a hearing before the Nasdaq Hearings Panel (the "Panel"). On September 19, 2016, the company requested a hearing before the Panel, which was held on November 3, 2016. At the hearing, the company presented its plan to gain compliance with the initial listing minimum bid or closing price requirement, including via the implementation of a reverse stock split if necessary. On November 8, 2016, the company received a letter from Nasdaq stating that the Panel had granted the company's request for continued listing on the Nasdaq Capital Market, subject to the company evidencing compliance with the initial listing minimum bid or closing price requirement by March 13, 2017. If the company fails to implement the reverse stock split and demonstrate compliance by this date, the Panel will issue a final determination to delist the company's shares and suspend trading of the company's shares on Nasdaq. In an effort to maintain the listing of the Common Stock on the Nasdaq Capital Market the Board of Directors of the company has determined that a reverse stock split is the best alternative to comply with the initial listing minimum bid or closing price requirement of Nasdaq.
The reverse stock split is subject to the approval of the stockholders of the company. The company filed a preliminary proxy statement with the SEC today for a special meeting of its stockholders, at which such approval will be sought. The time, date, location and other details regarding the special meeting will be communicated to the company's stockholders at a later date. Although DASAN Zhone Solutions expects that the reverse stock split will enable the company to comply with the initial listing minimum bid or closing price requirement of Nasdaq, there can be no assurance that the company will be able to regain such compliance . Delisting from the Nasdaq Capital Market could have a material adverse effect on the company's business and on the trading of its common stock.
About DASAN Zhone Solutions
DASAN Zhone Solutions, Inc. is a global leader in broad-based network
access solutions. The company provides solutions in five major product
areas including broadband access, Ethernet switching, mobile backhaul,
passive optical LAN (POL) and software defined networks (SDN). More than
750 of the world's most innovative network operators, service
providers and enterprises turn to DASAN Zhone Solutions for fiber access
transformation. DASAN Zhone Solutions is committed to building the
fastest and highest quality All IP Multi-Service solution for its
customers. DASAN Zhone Solutions is headquartered in Oakland,
This press release contains forward-looking statements that are subject
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DASAN Zhone Solutions, the DASAN Zhone Solutions logo, and al DASAN Zhone product names are trademarks of DASAN Zhone Solutions, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or products names are all subject to change without notice.