Professional Diversity Network Inc. (NASDAQ:IPDN) jumped 7% on no company news. However, the company offered an update recently regarding the progress on the Nasdaq notice of equity deficiency.On May 21, 2021, the company announced that Nasdaq had issued a letter notifying it about non-compliance with the minimum shareholders’ equity rule for continued listing. According to Nasdaq listing Rule 5550 (b)(1), companies should maintain a shareholders’ equity of over 42.5 million for continued listing on the Nasdaq exchange.
However, in its quarterly report filed on Form-10-Q for the quarter ended March 31, 2021, the company indicated that stockholders’ equity was $964,288, way below the minimum requirement for continued Nasdaq listing.
In the first quarter, the company reported a 51.1% increase in revenue from continued recruitment business growth and client acquisitions. The recruitment business continues to grow as companies seek to enhance inclusion and diversity. CEO Adam stated that the PDN Network reported a strong Q1, and they expect the continued political and corporate awareness in diversity and inclusion initiatives to drive growth.
Market Reaction:
On Monday, IPDN stock went up 6.90% at $1.55 with more than 669k shares, compared to its average volume of 866k shares. The stock has moved within a range of $1.4400 – 1.5800 after opening the trade at $1.46.
