Latch Notifies Nasdaq That It Does Not Anticipate Meeting Delinquent Filing Deadline
August 01 2023 - 4:30PM
Business Wire
The company remains committed to building a
disciplined and efficient business that makes spaces better places
to live, work, and visit
Latch, Inc. (NASDAQ: LTCH) today announced it has notified the
hearings panel of The Nasdaq Stock Market LLC (“Nasdaq”) that the
company does not anticipate regaining compliance with its periodic
filing obligations on or before its August 4, 2023 deadline due to
unexpected delays in the ongoing restatement of its historical
financial statements. As a result, Latch expects Nasdaq to issue a
delisting determination, causing the company’s securities to be
suspended from trading on Nasdaq. Once the suspension takes effect,
Latch expects that its securities will be traded on the OTC Expert
Market. The transition to the OTC markets will not change Latch’s
commitment to enhancing operational discipline and efficiency
within the organization.
As of July 31, 2023, the company’s total cash and cash
equivalents and current and non-current available-for-sale
securities was approximately $192 million.1 As announced on July
10, 2023, the company has commenced a reduction in force of
approximately 59% of its full-time employees, which it expects to
complete by November 1, 2023. These strategic measures, along with
the recently announced senior management additions, are intended to
build a solid foundation for future growth.
“Latch has, and will continue to, work diligently to complete
the restatement and remains committed to regaining compliance with
its periodic filing obligations as soon as possible,” said Latch’s
Interim CEO, Jason Keyes. “Despite these unforeseen delays related
to the restatement, I remain excited about Latch’s future. As
always, the company is committed to providing excellent products
and services to its customers.”
As previously announced, Jamie Siminoff and Dave Lillis are
expected to be appointed as the company’s Chief Executive Officer
and Chief Financial Officer, respectively, later this year.
About Latch, Inc.
Latch makes spaces better places to live, work, and visit
through a system of software, devices, and services. For more
information, please visit www.latch.com.
Forward-Looking Statements
This release contains certain forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “may,” “should,”
“would,” “will continue,” “will likely result,” and similar
expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Forward-looking information
includes, but is not limited to, statements regarding: the
company’s future products, performance, and operations, and the
related benefits to stockholders, customers, and residents; the
company’s strategy; the company’s ability to file its delinquent
periodic reports by the August 4, 2023 deadline or otherwise; the
company’s ability to otherwise comply with applicable Nasdaq
listing rules; the company’s ability to complete the restatement of
its historical financial statements; the company’s ability to have
its securities traded on the OTC Expert Market or another market;
completion of the company’s July 2023 reduction in force; and
expected transitions in management. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this document, including: (i) the company’s ability
to complete the restatement, and any impact of the July 2023
reduction in force thereon; (ii) the performance of the company’s
stock, especially in light of the limited liquidity and depressed
trading prices expected as a result of the delisting from Nasdaq;
(iii) the company’s ability to implement business plans and changes
and developments in the industry in which the company competes,
including successfully integrating Honest Day’s Work into its
operations following the July 3, 2023 closing of the acquisition
thereof (the “HDW Acquisition”); (iv) the Company’s ability to
repay the $22 million aggregate principal amount of promissory
notes issued in connection with the HDW Acquisition, for which
delisting from Nasdaq as of April 15, 2024 is an event of default;
(v) the company’s ability to preserve cash given the costs and
liabilities associated with the restatement and any related legal
proceedings; (vi) the Company’s ability to access liquidity,
through the capital markets or otherwise; and (vii) the company’s
response to any of the aforementioned factors. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this Report. The foregoing list of
factors is not exhaustive. You should carefully consider the
foregoing factors and the other risks and uncertainties described
in the “Risk Factors” section of the company’s Annual Report on
Form 10-K filed with the SEC on March 1, 2022, and other documents
filed by the company from time to time with the SEC. These filings
identify and address other important risks and uncertainties that
could cause actual events and results to differ materially from
those contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and the company assumes no obligation to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law, including
the securities laws of the United States and the rules and
regulations of the SEC. The company does not give any assurance
that it will achieve its expectations.
1This amount is unaudited. Latch also has liabilities including,
but not limited to, (i) $22 million aggregate principal amount of
promissory notes due in 2025 that accrue paid-in-kind interest at a
rate of 10% per annum and are subject to acceleration in the event
the company remains delisted from Nasdaq as of April 15, 2024 and
(ii) other current and non-current liabilities, including but not
limited to deferred revenue accrued liabilities, accounts payable,
and litigation reserves. The total amount of these liabilities
cannot be determined until the restatement is complete. You should
not make an investment decision solely based on the financial
information contained in this press release because you do not have
a complete view of the company’s current financial position. The
company intends to provide its comprehensive financial position in
connection with completion of the restatement, and you should
review such information when available. The company assumes no
obligation to update or revise this amount, whether as a result of
new information, future events, or otherwise, except as required by
law, including the securities laws of the United States and the
rules and regulations of the Securities and Exchange Commission
(the “SEC”).
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Investors: investors@latch.com Latch PR: press@latch.com
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