Zion Update: Additional 180-day Grace Period
Dear Zion Shareholders and Supporters,
Yesterday, we filed a Form 8-K with the SEC providing notification that NASDAQ has approved the transfer of the listing of Zion’s common stock from the NASDAQ Global Market to the NASDAQ Capital Market.
As a result, we have been granted an additional 180-day grace period, or until January 6, 2020, to regain compliance with the $1.00 minimum bid price requirement.
While the 8-K is submitted in language that is appropriate for an SEC filing, we wanted to be sure that you understood what this means for you.
Why is this occurring?
All companies traded on the NASDAQ Stock Market need to maintain a minimum bid price of $1.00. As we disclosed in our SEC filings on January 8, 2019, we were notified by NASDAQ that our stock had closed below $1.00 for the previous 30 consecutive trading days.
We were advised that we had until July 8, 2019, to regain compliance with that minimum bid price requirement.
That did not happen, so on July 3, 2019, we filed an application with NASDAQ to transfer our listing to the NASDAQ Capital Market, which NASDAQ approved on July 9, 2019.
How are we still traded on NASDAQ?
The NASDAQ Capital Market operates in substantially the same manner as the NASDAQ Global Market except with less restrictive criteria, except listed companies like Zion must continue to meet certain financial and corporate governance requirements, which we acknowledge.
With the approval of our transfer application, the net result is that, as of yesterday morning, July 11, our stock (symbol: “ZN”) continues to trade on NASDAQ (Capital Market) in the same manner as it has historically.
We now have until January 6, 2020, to regain compliance with the $1.00 minimum bid price requirement.
What about the stock held by Zion shareholders?
If you are a shareholder, your Zion stock can still be traded on NASDAQ like it was previously with no discernible difference.
What can change Zion’s status of “minimum bid price non-compliance”?
If at any time over the next six (6) months, or until January 6, 2020, the minimum bid price of Zion’s stock closes at $1.00 or more for ten (10) consecutive trading days, we will be back in minimum bid price compliance with NASDAQ.
Where can you learn more?
We encourage you to read the entire 8-K filing for specifics by clicking HERE.
For further questions, please email Zion (firstname.lastname@example.org) or call us at 1-888-891-9466.
Again, thank you for your support and prayers.
President and General Counsel
Zion Oil & Gas, Inc.