Wearable Devices Announces Receipt of Nasdaq Notification of Minimum Stockholders’ Equity Non-Compliance
January 17 2025 - 3:00PM
Wearable Devices Ltd. (the “Company” or “Wearable Devices”)
(Nasdaq: WLDS, WLDSW), an award-winning pioneer in artificial
intelligence (“AI”)-based wearable gesture control technology,
today announced that it has received a written notification (the
"Notification Letter") from the Listing Qualifications staff of The
Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it is
no longer in compliance with the minimum stockholders' equity
requirement for continued listing on the Nasdaq Capital Market,
listing Rule 5550(b)(1), due to its failure to maintain a minimum
of $2,500,000 in stockholders' equity. In the Company's Report of
Foreign Private Issuer on Form 6-K, dated September 23, 2024, the
Company reported stockholders' equity of approximately $1,695,000
as of June 30, 2024.
In accordance with Nasdaq rules, the Company has
45 calendar days, or until March 3, 2025, to submit a plan to
regain compliance. If the plan is accepted, Nasdaq can grant an
extension of up to 180 calendar days from the date of the letter to
evidence compliance. The Notification Letter has no immediate
effect on the Company’s listing on the Nasdaq Capital Market, and
during the grace period, as may be extended, the Company’s ordinary
shares and warrants will continue to trade on Nasdaq under the
symbol “WLDS” and “WLDSW”, respectively.
The Company expects that it will be able to
demonstrate compliance with the Nasdaq stockholders’ equity
requirement as of December 31, 2024, following the proceeds
received pursuant to the Company’s Standby Equity Purchase
Agreement with YA II PN, Ltd. and the Company’s registered direct
offering and concurrent private placement in November 2024.
About Wearable Devices Ltd.
Wearable Devices Ltd. is a pioneering growth
company revolutionizing human-computer interaction through its
AI-powered neural input technology for both consumer and business
markets. Leveraging proprietary sensors, software, and advanced AI
algorithms, the Company’s innovative products, including the Mudra
Band for iOS and Mudra Link for Android, enable seamless,
touch-free interaction by transforming subtle finger and wrist
movements into intuitive controls. These groundbreaking solutions
enhance gaming, and the rapidly expanding AR/VR/XR landscapes. The
Company offers a dual-channel business model: direct-to-consumer
sales and enterprise licensing. Its flagship Mudra Band integrates
functional and stylish design with cutting-edge AI to empower
consumers, while its enterprise solutions provide businesses with
the tools to deliver immersive and interactive experiences. By
setting the input standard for the XR market, Wearable Devices is
redefining user experiences and driving innovation in one of the
fastest-growing tech sectors. Wearable Devices’ ordinary shares and
warrants trade on the Nasdaq under the symbols “WLDS” and “WLDSW,”
respectively.Forward-Looking Statement
Disclaimer
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that are intended to be covered by the “safe
harbor” created by those sections. Forward-looking statements,
which are based on certain assumptions and describe our future
plans, strategies and expectations, can generally be identified by
the use of forward-looking terms such as “believe,” “expect,”
“may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,”
“estimate,” “anticipate” or other comparable terms. For example, we
are using forward-looking statements when we discuss regaining
compliance with Nasdaq’s continued listing requirements, the timing
and effect thereof. All statements other than statements of
historical facts included in this press release regarding our
strategies, prospects, financial condition, operations, costs,
plans and objectives are forward-looking statements.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: the trading of our ordinary
shares or warrants and the development of a liquid trading market;
our ability to successfully market our products and services; the
acceptance of our products and services by customers; our continued
ability to pay operating costs and ability to meet demand for our
products and services; the amount and nature of competition from
other security and telecom products and services; the effects of
changes in the cybersecurity and telecom markets; our ability to
successfully develop new products and services; our success
establishing and maintaining collaborative, strategic alliance
agreements, licensing and supplier arrangements; our ability to
comply with applicable regulations; and the other risks and
uncertainties described in our annual report on Form 20-F for the
year ended December 31, 2023, filed on March 15, 2024 and our other
filings with the SEC. We undertake no obligation to publicly update
any forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.Investor Relations
Contact
Michal EfratyIR@wearabledevices.co.ilMedia
Contact:
Steve SchusterRainier
Communicationssteve@rainierco.com+1-508-868-5892
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