Pareteum’s shares will be delisted from trading on the Nasdaq market from 12 November after the company failed to meet an extended deadline to file restated financial accounts. The company said it was still working on the audited accounts following an internal review earlier this year and expects to publish results soon. In the meantime, it’s also working on reforming corporate governance and continued business operations.
Pareteum said it regretted the Nasdaq market’s decision, but more time was needed to complete the restatement of 2018 and 2019 results. The shares will continue to trade on the over-the-counter pink market.
The internal review conducted over the first seven months of the year led to more work for its auditor, the company said. However, the restatement is “nearing completion” and the company will provide additional periodic updates as it gets closer to the publication. Results for the first three quarters of 2020 will be published shortly after the restated figures.
The Audit Committee, with its independent legal counsel and a separate, independent accounting firm, has completed its internal investigation in relation to the circumstances giving rise to the restatement. As a result, the company has instituted, and will continue to implement and evaluate, additional remedial measures and internal controls. It has already hired a Director of Internal Controls, reporting directly to the audit committee, and added new resources to its finance team. “We believe the processes we are implementing will significantly improve Pareteum’s oversight, control functions and corporate governance, and help strengthen the business platform for sustainable growth,” the company said in a letter to shareholders.
Additional changes may include new governance expertise in management and the board of directors, with Heidrick & Struggles hired to work on recruitment. The board also established a new Business and Strategy Committee, chaired by Independent Director Luis Jimenez-Tunon. Upon completion of the restatement, the company plans to hold a shareholder meeting and apply for relisting on Nasdaq.