DragonWave, Inc. (USA)(NASDAQ:DRWI) a leading worldwide dealer of packet microwave radio systems for access and mobile networks updated on NASDAQ listing. Last week, the company received a notice from the Listing Qualifications team of NASDAQ notifying the firm that it no longer fulfils with listing rules of NASDAQ.

It is due to the firm’s failure to maintain at least $2.5 million in shareholders’ equity or any options to such requirement. The firm confirmed shareholders’ equity of $1.662 million for the period closed August 31, 2016. This reported notice has no immediate impact on the listing of the firm’s common shares on NASDAQ exchange.

As per related listing guidelines, DragonWave has 45 days to present NASDAQ with a plan to reclaim compliance by meeting the minimum shareholders’ equity requirement. If the exchange accepts this plan, the company may get an extended period of up to 180 days from the notice date, or until mid-April 2017, to mark compliance with needed listing requirements.

The company intends to regain compliance as per the laid guidelines and intends present a plan to NASDAQ. Trading of DragonWave equity on the Toronto Stock Exchange is not impacted by this notice.

The update

Earlier in October, DragonWave reported that Sprint has chosen its microwave backhaul system for network deployment under firm’s densification and optimization plan. The company was chosen for the combination of its industry pioneering system gain and dual channel capability, and also for progressive network security capabilities.

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Microwave backhaul system will be deployed as Sprint’s plan to considerably densify its network via the implementation of small cells and other offerings. Its objective remains to further enhance the customer experience and network performance. Densification allows Sprint to match pace with the increasing demand for data and offer clients with increased faster data speeds and capacity in targeted high-traffic sites.

Peter Allen, the President and CEO of DragonWave, said that the company is delighted to extend its association with Sprint. They know that they can bring different performance benefits that can be leveraged during network densification initiatives. The company look forward to backing Sprint’s expansion and growth by delivering on their commitment to offer unmatched product performance, support and reliability.