Will Elephant Talk Communications Corp (NYSEMKT:ETAK) Survive This Threat?


Elephant Talk Communications Corp. (NYSEMKT: ETAK) is facing the risk of losing its listing on the NYSEMKT stock exchange. The company was recently notified that it was no long in compliance with the requirements for continued listing on the market. Following the notification, ETAK has a few weeks to provide a plan to NYSEMKT detailing how it will regain compliance.

But submitting the plan doesn’t guarantee that Elephant Talk Communications Corp. (NYSEMKT: ETAK) will retain its listing on NYSEMKT. First, the company has a June 27, 2016 deadline to explain how it hopes to become compliant with NYSEMKT listing requirement. After that, it will wait for a feedback from the stock exchange market to know whether its plan has been accepted or not. If the plan is rejected, it will be the end of the story for ETAK. Rejection of the plan would mean that NYSEMKT would embark on the process of delisting the stock.

If the compliance plan is accepted, ETAK will have until November 27, 2016 to become compliant again so that it can be retained in NYSEMKT listing. But even acceptance of the plan doesn’t mean that ETAK has its problems reduced. If the company fails to regain compliance even after the extra time to do it, it will be delisted from NYSEMKT.

What’s the management saying about the non-compliance?

The management of Elephant Talk Communications Corp. (NYSEMKT: ETAK) said that NYSEMKT’s non-compliance letter didn’t come as a surprise. They said that because the company has been on a restructuring mode, some compliance issues have been out of shape but they hope that it will be easy to regain compliance if their compliance plan is accepted.

Among other things, ETAK will need to do a reverse split of its stock to boost the minimum bid price of its shares to become compliant.

Communicating the plan

Elephant Talk Communications Corp. (NYSEMKT: ETAK) promised that it would share its compliance plan later this month where it will detail how it expected to become compliant again to avoid delisting from NYSEMKT.


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