Business
Professional Diversity Network, Inc. Updates Nasdaq’s Notice of Equity Deficiency
CHICAGO, July 15, 2021 (GLOBE NEWSWIRE) -- Professional Diversity Network, Inc. (NASDAQ:IPDN), (“IPDN” or the “Company”), a global developer and operator of
About this update from Professional Diversity Network, Inc.
[{"type":"text","content":"CHICAGO, July 15, 2021 (GLOBE NEWSWIRE) -- Professional Diversity Network, Inc. (NASDAQ:IPDN), (“IPDN” or the “Company”), a global developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse individuals, today updates its progress on Nasdaq’s notice of equity deficiency. As previously disclosed, on May 21, 2021, the Company received a letter (the “Nasdaq Letter”) from Nasdaq notifying the Company that it is not in compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2.5 million. In the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2021, the Company reported stockholders’ equity of $964,288, which is below the minimum stockholders’ equity required for continued listing. On July 9, 2021, the Company closed the registered direct offering (the “Transaction”), pursuant to which certain institutional accredited investors purchased 1,470,588 shares of the Company’s common stock, par value $0.01 per share (the “Shares”), at a per share price equal to $1.70 for gross proceeds of $2,499,999.60, pursuant to its Registration Statement on Form S-3 (Registration Statement No. 333-227249). As a result of the Transaction, the stockholders’ equity of the Company as of July 9, 2021 is approximately $2.9 million (unaudited). The Company therefore believes that as of the date hereof the Company has regained compliance with Nasdaq Listing Rule 5550(b). Nasdaq will continue to monitor the Company’s ongoing compliance with the stockholders’ equity requirement and, if at the time of its next periodic report the Company does not evidence compliance, it may be subject to delisting. The Company intends to pursue other transactions in the near term, including without limitation equity financing transactions and/or acquisitions, to further shore up the Company’s stockholders’ equity. About Professional Diversity Network Professional Diversity Network, Inc. (NASDAQ: IPDN) is a global developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse professionals. We operate subsidiaries in the...