Professional Diversity Network, Inc. Updates Nasdaq’s Notice of Equity Deficiency
July 15 2021 - 9:00AM
Professional Diversity Network, Inc. (NASDAQ:IPDN), (“IPDN” or the
“Company”), a global developer and operator of online and in-person
networks that provides access to networking, training, educational
and employment opportunities for diverse individuals, today updates
its progress on Nasdaq’s notice of equity deficiency.
As previously disclosed, on May 21, 2021, the Company received a
letter (the “Nasdaq Letter”) from Nasdaq notifying the Company that
it is not in compliance with the minimum stockholders’ equity
requirement for continued listing on the Nasdaq Capital Market.
Nasdaq Listing Rule 5550(b)(1) requires listed companies to
maintain stockholders’ equity of at least $2.5 million. In the
Company’s Quarterly Report on Form 10-Q for the period ended March
31, 2021, the Company reported stockholders’ equity of $964,288,
which is below the minimum stockholders’ equity required for
continued listing.
On July 9, 2021, the Company closed the registered direct
offering (the “Transaction”), pursuant to which certain
institutional accredited investors purchased 1,470,588 shares of
the Company’s common stock, par value $0.01 per share (the
“Shares”), at a per share price equal to $1.70 for gross proceeds
of $2,499,999.60, pursuant to its Registration Statement on Form
S-3 (Registration Statement No. 333-227249).
As a result of the Transaction, the stockholders’ equity of the
Company as of July 9, 2021 is approximately $2.9 million
(unaudited). The Company therefore believes that as of the date
hereof the Company has regained compliance with Nasdaq Listing Rule
5550(b).
Nasdaq will continue to monitor the Company’s ongoing compliance
with the stockholders’ equity requirement and, if at the time of
its next periodic report the Company does not evidence compliance,
it may be subject to delisting. The Company intends to pursue other
transactions in the near term, including without limitation equity
financing transactions and/or acquisitions, to further shore up the
Company’s stockholders’ equity.
About Professional Diversity
Network
Professional Diversity Network, Inc. (NASDAQ:
IPDN) is a global developer and operator of online and in-person
networks that provides access to networking, training, educational
and employment opportunities for diverse professionals. We operate
subsidiaries in the United States including International
Association of Women (IAW), which is one of the largest, most
recognized networking organizations of professional women in the
country, spanning more than 200 industries and professions. Through
an online platform and our relationship recruitment affinity
groups, we provide our employer clients a means to identify and
acquire diverse talent and assist them with their efforts to comply
with the Equal Employment Opportunity Office of Federal Contract
Compliance Program. Our mission is to utilize the collective
strength of our affiliate companies, members, partners and unique
proprietary platform to be the standard in business diversity
recruiting, networking and professional development for women,
minorities, veterans, LGBTQ and disabled persons globally.
Forward-Looking Statements
This press release contains certain
forward-looking statements based on our current expectations,
forecasts and assumptions that involve risks and uncertainties.
This release does not constitute an offer to sell or a solicitation
of offers to buy any securities of any entity. Forward-looking
statements in this release are based on information available to us
as of the date hereof. Our actual results may differ materially
from those stated or implied in such forward-looking statements,
due to risks and uncertainties associated with our business, which
include the risk factors disclosed in our most recently filed
Annual Report on Form 10-K and in our subsequent filings with the
Securities and Exchange Commission. Forward-looking statements
include statements regarding our expectations, beliefs, intentions
or strategies regarding the future and can be identified by
forward-looking words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “should,” and
“would” or similar words. We assume no obligation to update the
information included in this press release, whether as a result of
new information, future events or otherwise. Our most recently
filed Annual Report on Form 10-K, together with this press release
and the financial information contained herein, are available on
our website, www.prodivnet.com. Please click on “Investor
Relations.”
Investor Inquiries:investors@ipdnusa.com+1 (312)
614-0950
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