Sequans Communications Bets Big on Bitcoin Amid NYSE Delisting Threat

$384 Million Fundraising Move to Create Crypto Treasury

Holy crypto comeback, Batman! Sequans Communications just dropped a bombshell: they're aiming to raise a whopping $384 million to dive headfirst into the wild world of Bitcoin. But hold your horses, this audacious plan needs the green light from shareholders before it can blast off into the digital stratosphere.

On June 23, Sequans threw caution to the wind and announced their daring plan to establish a Bitcoin treasury. Forget about their 5G and 4G IoT semiconductor and module roots, these guys are ready to ride the crypto wave! To fuel this electrifying initiative, Sequans is pulling out all the stops with a private placement extravaganza, issuing around $195 million in equity securities and $189 million in convertible secured debentures. Ka-ching!

"We believe bitcoin's unique characteristics will enhance our financial resilience and deliver significant value to our shareholders," declared Georges Karam, CEO of Sequans, with the confidence of a crypto cowboy.

But Sequans isn't going solo on this thrilling journey. They've teamed up with Swan Bitcoin, a U.S.-based Bitcoin financial services firm, to navigate the choppy waters of the crypto sea.

The clock is ticking, though. Shareholders have until June 30 to give their stamp of approval for this daring initiative to proceed. If they give it the thumbs up at the June 30 meeting, Sequans is gearing up to close the fundraising round faster than a Bitcoin transaction, targeting July 1, provided all the other boxes are checked.

But wait, there's a twist in this crypto tale. Sequans is feeling the heat from the New York Stock Exchange, who's been breathing down their neck about their listing compliance. On June 5, the NYSE dropped a bombshell of their own, notifying Sequans that their average global market cap had plummeted below the required $50 million threshold for a straight 30 trading days, while their stockholders' equity was also languishing under $50 million. Double trouble!

This double whammy triggered a formal notice of non-compliance under Section 802.01B of the NYSE Listed Company Manual. But don't panic just yet, Sequans' American Depositary Shares (ADSs) aren't getting the boot just yet. The NYSE has given them a 90-day window to submit a detailed business plan, outlining how they plan to claw their way back to compliance within nine months. The NYSE will then take a magnifying glass to this plan and decide within 45 days if Sequans' proposed actions are more than just hot air.

During this nail-biting nine-month "Market Cap Cure Period," Sequans' ADSs will continue to ride the rollercoaster of the NYSE, as long as they keep playing by the exchange's other listing rules.

Sequans is not taking this lying down. They're rolling up their sleeves and actively exploring strategies to pump up their market cap and meet the exchange's criteria. And you know what? This bold move to raise funds for a Bitcoin treasury might just be the secret weapon they need to blast their way back into compliance with the NYSE's listing requirements. Hold on tight, folks, because this crypto rollercoaster is just getting started!