E-payment services giant MOL Global, Inc. (NASDAQ:MOLG) has revealed its plan to delist its American Depositary Shares (ADSs) from the NASDAQ Global Select Market and to effect the deregistration under Section 12(b) of the Securities Exchange Act of 1934. Beginning April 18, MOL Global ADSs trading on NASDAQ will be suspended.
Non-Compliance
The decision rooted from the non-compliance letter received by MOL Global from NASDAQ in October. According to the latter, the company no longer meets the $1 minimum bid price per ADS. MOL Global was able to seek a chance to propose its plan to make up for the non-compliance by April 4. Subsequently, NASDAQ gave the company an extension to send a plan of action to regain compliance before April 14. However, MOL Global has decided not to submit a proposal and fully allow its ADSs to be delisted from NASDAQ. The index is anticipated to file Form 25 or a Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act of 1934 with the Securities and Exchange Commission (SEC) in order to make the delisting official and effective about 10 days thereafter.
On the other hand, MOL Global can file Form 15 with the SEC at least 10 days after the delisting has been effected. This will allow the company to suspend all reporting obligations as mandated by Section 15(d) of the Securities Exchange Act of 1934 provided that MOL Global has less than 300 holders of record at the time of the filing.
How MOL Global Decided to Be Delisted from NASDAQ
The company carefully reviewed and considered numerous factors in coming up with the decision. MOL Global thoroughly weighed the advantages and disadvantages that will result from both applying for regaining compliance and allowing its ADSs to be fully delisted from the index. Some of the most important factors include the non-compliance letters for the requirements, ongoing listing, administrative, legal, and additional costs, time, and resources dedicated to sustain regulatory compliance obligations. MOL Global has decided that it would rather direct its resources in growing the business further in various aspects, improving its balance sheet and strengthening its financial capabilities. The board of directors are confident that allowing MOL Global’s ADSs to be delisted from NASDAQ protects the best interest of both the company and its shareholders.
