Global Eagle receives Nasdaq warning after missing SEC deadline
WASHINGTON — Satellite connectivity provider Global Eagle Entertainment has been given until May 19 to release its 2016 financial results to avoid the risk of being dropped from the Nasdaq stock exchange.
In February, Global Eagle’s stock tumbled when it disclosed the abrupt departures of its chief executive and chief financial officer and warned the U.S. Securities and Exchange Commission it was going to miss its March 16 deadline for filing a 10-K detailing the company’s 2016 financial results.
Last week, Nasdaq gave Global Eagle 60 days to either file the overdue 10-K or submit a plan for regaining compliance with Nasdaq’s listing rules. In a March 24 press release disclosing the violation, Global Eagle noted that submitting a compliance plan that satisfies Nasdaq could give the company until as late as Sept. 12 to report its 2016 earnings.
“If NASDAQ does not accept the Company’s plan, the Company will have the opportunity to appeal that decision to a NASDAQ Hearings Panel before any delisting occurs,” Global Eagle said.
Global Eagle’s stock has been trading about 60 percent below its 52-week high of $9.73 a share. It closed at $3.13 a share March 27, up 7 percent over the previous week’s close.
At least six law firms have launched class-action lawsuits on behalf investors who bought Global Eagle shares between mid-2016 and the Feb. 20 departure of the company’s CEO and CFO.