Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of telecommunications expense management (TEM) and enterprise mobility management (EMM) solutions, has announced that after submitting its plan to regain compliance with the minimum USD 2,500,000 in stockholders´ equity requirement as set forth in NASDAQ Listing Rule 5550 (b)(1), it received a notice from the Listing Qualifications Department of NASDAQ advising that it has until November 5, 2018 to regain compliance, the company said.
The company´s plan to regain compliance is based in part on various cost-cutting measures, including a reduction in number of personnel that was implemented in the second quarter of this year and other steps to regain profitability in 2018.
In addition, the company has entered into a letter of intent with an institutional investor pursuant to which it has agreed to invest USD 1,500,000 in consideration for the company issuing a new class of convertible preferred stock. Such issuance, which was approved by the board of directors of the company on June 18, 2018, will require shareholder approval, which is expected to be obtained in the early Fall. The investor has also already invested an additional USD 200,000 in consideration for the issuance of 175,439 of the company´s Ordinary Shares earlier this month.
As a result of this expected aggregate capital infusion of USD 1.7 million, the company expects to regain compliance with the USD 2.5 million stockholders´ equity requirement. No assurance can be given that the company and the investor will enter into a definitive agreement or that shareholder approval will be obtained to effectuate the proposed issuance.
Mer Telemanagement Solutions is focused on innovative products and services for enterprises in the area of telecom expense management (TEM) and Call Accounting. Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in Israel, the U.S and Hong Kong, as well as through distribution channels. For more information visit the MTS web site: www.mtsint.com.