Super Micro Computer (SMCI) Terminates Its Loan Agreements With Cathay Bank And The Bank Of America, Eliminating The Need To Furnish Its Financial Statements By The End Of 2024 Under The Loan Covenants
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Super Micro Computer (NASDAQ: SMCI), a prolific retailer of high-performance servers and liquid-cooled AI racks, has seen its shares rally in recent days on expectations that the Nasdaq exchange would accept the company's proposed plan to regain compliance with mandatory listing requirements, thereby precluding a messy delisting process. Yet, SMCI's termination of two loan agreements now suggests that its financial statements will likely not be furnished anytime soon.
For the benefit of those who might not be aware, the Nasdaq exchange had declared on the 20th of November that Super Micro Computer was "not in compliance with Nasdaq listing rule 5250(C)(1)."
Related Story Super Micro Computer (SMCI) Found “Not In Compliance With Nasdaq Listing Rules,” Won’t Get Delisted Just Yet [Updated]
Back in August, SMCI had delayed the filing of its annual report for the fiscal year that ended on the 30th of June, 2024, in the aftermath of a hard-hitting report from Hindenburg Research, which detailed instances of alleged accounting fraud and corporate governance malfeasance. The delay was presumably in a bid to undertake a comprehensive internal review.
Under the prevailing statutory requirements, Super Micro Computer had to file its annual report by the 30th of August. The Nasdaq exchange then warned SMCI of a potential de-listing action should it fail to file the requisite annual report by the 16th of November.
For its part, Super Micro Computer submitted a compliance plan on the 18th of November to try to deter any punitive delisting action. According the company's statement given to Wccftech, Nasdaq is still reviewing that plan.
Super Micro Computer Terminates Loan Agreements With Cathay Bank And The Bank Of America
This brings us to the crux of the matter. In a new filing with the SEC, Super Micro Computer has announced the
Read more on wccftech.com
