RA'ANANA, Israel and
RIVER EDGE, New Jersey,
July 30, 2018 /PRNewswire/
-- Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market:
MTSL), a global provider of telecommunications expense management
(TEM) and enterprise mobility management (EMM) solutions, announced
today that after submitting its plan to regain compliance with the
minimum $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'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 $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 $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 $1.7 million, the Company
expects to regain compliance with the $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.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) 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 please visit the MTS web site:
www.mtsint.com.
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to, risks in product
development plans and schedules, rapid technological change,
changes and delays in product approval and introduction, customer
acceptance of new products, the impact of competitive products and
pricing, market acceptance, the lengthy sales cycle, proprietary
rights of the Company and its competitors, risk of operations in
Israel, government regulations,
dependence on third parties to manufacture products, general
economic conditions and other risk factors detailed in the
Company's filings with the United States Securities and Exchange
Commission.
Contact:
Ofira Bar
Interim CFO
Tel: +972-9-7777-540
Email: ofira.bar@mtsint.com
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)