Versus Systems Inc. Regains Compliance with Nasdaq Stockholder Equity Requirement

On January 7, 2025, Versus Systems Inc. (NASDAQ: VS) filed a Form 8-K with the Securities and Exchange Commission (SEC) detailing that the company has successfully addressed a deficiency highlighted by The Nasdaq Capital Market (Nasdaq).

The deficiency in question was first cited by Nasdaq in a letter dated August 22, 2024. In response, Versus Systems completed the sale and issuance of 2,155,172 shares of common stock and warrants for an additional 1,077,586 common stock shares. This action was taken upon the conversion of a $2.5 million promissory note. As a result of this transaction, the company’s stockholders’ equity now surpasses the requirement needed for continued listing on Nasdaq as per Nasdaq Listing Rule 5550(b)(1).

While Nasdaq has informed Versus Systems that it will continue to monitor the company’s compliance with the stockholders’ equity requirement, the company may face potential delisting if it fails to evidence compliance in its next periodic report.

Furthermore, on January 6, 2025, Nasdaq issued a separate deficiency letter because Versus Systems did not conduct an annual shareholders meeting in 2024, a requirement outlined by Nasdaq Listing Rules 5620(a) and 5810(c)(2)(G). To rectify this deficiency, Versus Systems intends to hold a shareholder meeting in the second quarter of 2025, which will encompass both the annual meeting for 2024 and 2025.

Although the January 6 notification does not immediately impact the listing of Versus Systems securities on Nasdaq, the company has been given 45 calendar days, until February 20, 2025, to submit a plan to regain compliance with the annual meeting requirement. Should the plan be accepted by Nasdaq, an extension until June 30 may be granted for Versus Systems to regain compliance. The company anticipates conducting the required shareholder meeting in the second quarter of 2025 to uphold compliance standards.

Exhibit 104, as part of the Form 8-K filing, includes a Cover Page Interactive Data File (embedded within the Inline XBRL document). No additional financial statements or exhibits were attached to the filing.

As of January 7, 2025, Luis Goldner, Chief Executive Officer of Versus Systems Inc., signed the report on behalf of the company in accordance with the Securities Exchange Act of 1934.

This document serves as a notification of the company’s efforts to address compliance concerns with Nasdaq and ensure continued adherence to regulatory requirements and listing standards. Versus Systems looks forward to moving ahead with plans to maintain regulatory compliance and reinforces its commitment to stakeholders and shareholders.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Versus Systems’s 8K filing here.

About Versus Systems

Versus Systems Inc develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices.