TruGolf clarifies Nasdaq compliance plan, provides context to ELOC

TruGolf (TRUG) Holdings has clarified its plan to regain compliance with Nasdaq listing rules in response to shareholder inquiries. On August 19, 2024, TruGolf Holdings, Inc. received a written notification from the Listing Qualifications Department of the Nasdaq Stock Market notifying the Company that, the Company’s stockholders’ equity was ($10,508,104), and therefore, the Company was not in compliance with Nasdaq’s Listing Rule 5450(b)(1)(A), which requires a $10,000,000 minimum stockholders’ equity standard. On May 15, the Company presented a plan to the Nasdaq Hearings panel on how it plans to regain compliance with Nasdaq’s listing rules and requested an extension to execute on the plan. To date the Hearings panel has not rendered a determination. There can be no assurance that it will provide an extension or move to delist. The key provisions of the plan were: The Company converted approximately 2/3’s of the accrued dividends payable owed to the company’s founders to common stock. The PIPE note holders agreed to exchange their outstanding notes and associated warrants for new preferred shares and warrants. All unissued notes would be canceled. The Company has entered into an Equity Line of Credit for $20M that could provide liquidity without reducing shareholder equity if additional funds to operate the business are required. A reverse split would be approved by the Board, subject to shareholder authorization, if necessary to regain compliance with Nasdaq minimum pricing rules.