Sequans Communications (SQNS) Receives NYSE Non-compliance Notice

Sequans Communications S.A. (NYSE: SQNS) today announced that on April 9, 2024 it received a notice (the "Notice") from the New York Stock Exchange (the "NYSE") informing the Company that it is no longer in compliance with Sections 802.01B and 802.01C of the NYSE Listed Company Manual.

The Company was notified by the NYSE that it was not in compliance with Section 802.01B (the "Market Cap Deficiency") because it had an average global market capitalization over a consecutive 30 trading-day period below $50,000,000 and, at the same time, stockholders' equity less than $50,000,000. The Company was concurrently notified by the NYSE that it was also not in compliance with Section 802.01C (the "Share Price Deficiency", together with the Market Cap Deficiency, the "Deficiencies") because the average closing price of the Company's American Depositary Shares (ADSs) was less than $1.00 over a consecutive 30 trading-day period. The Notice does not result in the immediate delisting of the Company's ADSs from the NYSE. The Company has notified the NYSE that it intends to cure the Deficiencies and return to compliance with the NYSE's continued listing standard.

Share Price Deficiency

Under the NYSE standards, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement. The Company can regain compliance during the six-month cure period if on the last trading day of any calendar month during the period or on the last trading day of the period, the Company's ADSs have a closing share price of at least $1.00 per share and an average closing share price of at least $1.00 per share over the previous 30 consecutive day trading period.

The Company intends to cure the price deficiency and return to compliance with the NYSE continued listing requirement within the applicable cure period. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt agreements.

Market Cap Deficiency

In accordance with applicable NYSE procedures, the Company has 90 days from receipt of the Notice to submit a business plan advising the NYSE of the definitive action(s) the Company has taken, or is taking, that would bring it into compliance with continued listing standards within 18 months of receipt of the Notice (the "Market Cap Cure Period," together with the Share Price Cure Period, the "Cure Periods"). The NYSE will review the plan and, within 45 days of its receipt, determine whether the Company has made a reasonable demonstration of an ability to conform to the relevant standards in the 18-month period. If the NYSE accepts the plan, the Company's ADSs will continue to be listed and traded on the NYSE during the 18-month period, subject to the Company's compliance with the other continued listing standards of the NYSE and continued periodic review by the NYSE of the Company's progress with respect to its plan. Sequans is currently evaluating its available options and developing a plan to regain compliance with the minimum global market capitalization requirement.

The Company's ADSs will continue to be listed and trade on the NYSE during the Cure Periods, subject to the Company's compliance with other NYSE continued listing standards.

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