Sequans Communications S.A. (SQNS) restored full compliance with the New York Stock Exchange’s continued listing standards on January 15 2026, after a period of falling below the exchange’s $50 million market‑capitalization and shareholders’‑equity thresholds. The company’s compliance status was reinstated following a $195 million equity private placement that closed on July 7 2025, which lifted its market cap and equity above the required levels and eliminated the risk of a delisting notice.
Prior to the private placement, Sequans’ market capitalization and shareholders’ equity had dipped below NYSE thresholds for 30 consecutive trading days, prompting a compliance notice on June 5 2025. The company’s earlier compliance issues also included a share‑price deficiency notice on April 9 2024, when its average closing price fell below $1.00. In addition, a strategic sale of its 4G IoT technology to Qualcomm for $200 million on September 30 2024 had reshaped the balance sheet, providing capital that helped the company navigate the compliance gap but also contributing to a debt load of $117.74 million as of January 15 2026.
The equity raise not only met the NYSE’s financial thresholds but also provided a buffer against future market‑cap volatility. By restoring compliance, Sequans removes a regulatory risk that could erode investor confidence and trading liquidity, thereby strengthening its financial foundation. The company’s CEO, Georges Karam, emphasized that the milestone supports its long‑term strategy to expand its 5G/4G IoT portfolio and to broaden its business model through IP licensing and engineering services.
Management noted that the private placement, while dilutive to existing shareholders, was a necessary step to secure continued access to capital markets and to maintain the company’s ability to invest in next‑generation 5G technology. The company also highlighted its focus on reducing debt and improving cash flow, positioning itself for sustainable growth in the competitive IoT semiconductor space.
Analysts observed that the market reaction to the compliance announcement was muted, reflecting concerns about the company’s high valuation multiples and the dilution impact of the equity raise. Nonetheless, the restored compliance was viewed as a positive development that mitigates a significant regulatory headwind and signals management’s commitment to maintaining listing standards while pursuing strategic expansion.
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