MIAMI, Nov. 6, 2019 /PRNewswire/ -- Cool
Holdings, Inc. (NASDAQ: AWSM) (the "Company" or "Cool
Holdings") announced that it withdrew its oral hearing request (the
"Request") it previously submitted to the Nasdaq Hearings Panel
(the "Panel") on October 7, 2019. The
Request was submitted to the Panel after the Company received a
letter from the Nasdaq Listing Qualifications Staff on October 1, 2019 (the "Letter") stating that it
was still not compliant with the minimum stockholders' equity
requirement of Nasdaq Listing Rule 5550(b) and would be suspended
from the Nasdaq Capital Market ("Nasdaq") at the opening of
business on October 10, 2019.
Additionally, the Letter stated a Form 25-NSE would be filed by
Nasdaq with the Securities and Exchange Commission (the "SEC") to
remove the Company's shares of common stock from listing and
registration on Nasdaq (the "Delisting"). The submission of
the Request stayed the Delisting from proceeding, subject to a
hearing in front of the Nasdaq Hearings Panel which was to occur on
November 21, 2019 (the "Hearing").
The Company originally intended to appeal the Delisting at the
Hearing. However, the board of directors, in consultation with
senior officers of the Company (collectively, the "Management")
subsequently reviewed a number of considerations and factors.
After assessing the Company's business, finances, the price of its
common stock and regulatory requirements of Nasdaq, Management
determined that the potential negative impact, financial and
otherwise, to the Company and its stockholders from corporate and
other actions required to regain compliance with Nasdaq rules to
end the Delisting were not warranted.
As a result of withdrawing the Request, the Company received
notification from Nasdaq that its common stock will be suspended at
the opening of business on November 8,
2019, and a Form 25 to complete the Delisting will be
filed with the SEC by Nasdaq when all its internal appeal periods
have expired.
The Company has applied to have its common stock traded on the
Over-the-Counter OTCQB Venture Market (the "OTCQB") and anticipates
launching on the OTCQB the same date the Delisting occurs.
The Company will continue to file periodic and other reports with
the SEC as the Company's common stock will remain registered under
Section 12(g) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act").
Commenting on the move, Rein Voigt, president and chief
executive officer of Cool Holdings, stated: "This was an
extremely difficult decision for us to make, but we feel it is
appropriate in the circumstances as we work to restructure and
recapitalize our Company after the recent acquisition of Simply
Mac, Inc., the largest Apple Premiere Partner in the United
States. The OTCQB will provide us with a lower-cost trading
platform, while maintaining liquidity and transparency for our
stockholders, and we will have the ability to take appropriate
corporate actions without the regulatory delays we have been
constrained by in the past."
About Cool Holdings, Inc.
Cool Holdings is a
Miami-based company currently
comprised of Simply Mac and OneClick, two chains of retail stores
and an authorized reseller under the Apple® Premier
Partner, APR (Apple® Premium Reseller) and AAR MB
(Apple® Authorized Reseller Mono-Brand) programs and
Cooltech Distribution, an authorized distributor to the
OneClick® stores and other resellers of
Apple® products and other high-profile consumer
electronic brands. Additional information can be found on its
website at www.coolholdings.com.
Forward-looking and cautionary statements
Forward-looking statements in this press release and all other
statements that are not historical facts are made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements, including those related to launching and
trading on the OTCQB, the benefits of delisting from NASDAQ and
trading on the OTCQB, the timing for trading on the OTCQB and
having the Company's common stock remain registered under Section
12(g) of the Exchange Act involve factors, risks, and uncertainties
that may cause actual results in future periods to differ
materially from such statements. There are a number of factors that
could cause actual events to differ materially from those indicated
by such forward-looking statements, including actions by third
parties, such as Apple, NASDAQ, the SEC and the OTC. A list and
description of various risk factors related to Cool Holdings, Inc.
can be found and reviewed at www.sec.gov. These forward-looking
statements speak only as of the date of this release and we
undertake no obligation to publicly update any forward-looking
statements to reflect new information, events or circumstances
after the date of this release.
All product names, logos, and brands are property of their
respective owners. All company, product and service names used in
this website are for identification purposes only. Use of these
names, logos, and brands does not imply endorsement.
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SOURCE Cool Holdings, Inc.