SuperCom receives biometric offender monitoring contract and share price warning
SuperCom has received notice from Nasdaq warning the share price for the biometric offender monitoring provider has spent 30 consecutive days below the required $1.00 price, but has also picked up another electronic monitoring contract in the Midwest. The company said in an announcement it expects to regain compliance with minimum bid requirements within the next 180 days to avoid delisting.
According to Nasdaq listing rules, the company has been given a 180-calendar day compliance period, which end April 13, 2020, during which SuperCom shares will continue to be listed and traded on the Nasdaq. If shares do not meet the requirement within the extension granted, the company may be eligible for a second extension to carry out a reverse stock split. If the company implements a reverse stock split, it must be complete within ten business days of the compliance period’s expiration, according to the announcement.
SuperCom CEO Arie Trabelsi announced a plan to purchase company shares, which he said are undervalued, in September.
The new criminal justice customer will implement SuperCom’s PureSecurity Suite, which leverages fingerprint biometrics, paying a per-unit daily rate for its use, and generating steady-state recurring revenues for the company.
“As a public safety solutions manufacturer, SuperCom must be selective in whom we work with. We are continually impressed at the level of highly respected partners we are able to contract with. These quality partnerships are a testament to the value our products bring to the market,” comments SuperCom Americas President Ordan Trabelsi.
“SuperCom continues to win new business in a competitive and demanding market with legacy incumbent vendors,” Ordan Trabelsi continues. “Public Safety technology product evaluations are lengthy and thorough. There is a lot riding on the line, and customers cannot afford to make the wrong decision. Additionally, they make a considerable investment in time and effort educating their staff on the operations and capabilities of our products. Each win continues to demonstrate industry acceptance and faith in our abilities.”
Ordan Trabelsi also notes that the contract is the ninth announced so far this year, well up from the one or two contracts SuperCom was securing on average even a couple of years earlier.