Insider Brief
- D-Wave received notice from the New York Stock Exchange (NYSE) that it is not in compliance with the NTSE’s regulations on closing prices.
- If D-Wave cannot comply with the closing price standard it faces delisting from the exchange.
- The Canadian-based company, a pioneer in quantum computing, can see alternatives to comply, such as a reverse stock split.
D-Wave Systems Inc. announced today that it has received notice from the New York Stock Exchange (NYSE) that it is not in compliance with the the exchange’s regulations on closing prices, according to media reports and a statement from the company. The regulations require that the average closing price of the Company’s common stock must be more than $1.00 over a consecutive 30 trading-day period.
The notice will not lead to the immediate delisting of the company’s common stock from the NYSE.
D-Wave, an important part of Canada’s quantum ecosystem, has informed the NYSE that it intends to cure the stock price deficiency and return to compliance with the NYSE continued listing standard. It can regain compliance at any time within the six-month period following receipt of the NYSE notice, provided it meets the specified conditions. The company must have a closing share price of at least $1.00 on the last trading day of any calendar month during the “cure” period, and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.
According to reports, the company is considering various alternatives, including a reverse stock split, but these are subject to shareholder approval.
D-Wave reports that it is committed to maintaining compliance with all applicable listing standards and will work diligently to regain compliance within the cure period. The company will continue to be listed and trade on the NYSE during this period, providing it complies with other NYSE continued listing standards.
D-Wave will provide updates on its progress as appropriate.
According to The Quantum Insider and TQI’s Intelligence Platform, D-Wave went public in the summer of 2022 through a special purpose acquisition company — or SPAC. The deal, initially pegged at $1.35 billion, shrank considerably due to investor redemptions, an aspect of SPAC agreements that gives investors the right to redeem their shares of the SPAC before the merger or acquisition is completed. D-Wave was not the only company — in quantum or in the market broadly — to fall victim to an excessive investor redemption rate.
The Canadian government added a $40 million boost to the company in March 2021.
For more market insights, check out our latest quantum computing news here.
