Sonder Holdings receives noncompliance letter from Nasdaq, submits appeal

Sonder Holdings announced that it has received a letter from the staff of Nasdaq notifying the company that since it remains delinquent in filing its Forms 10-Q for the periods ended March 31 and June 30, respectively, the staff has determined that the company is non-compliant with Nasdaq Listing Rule 5250(c)(1). Previously, the staff granted the Company an exception until September 30, to file all delinquent periodic reports. Additionally, the company was previously deemed delayed on the filing of the Annual Report on Form 10-K for the year ended December 31, 2023; however, the company has since filed the 2023 Form 10-K on September 27 and the staff determined that the company complies with respect to the 2023 Form 10-K. As a result of the delinquent filings, the company’s common stock and warrants are subject to suspension in trading on October 10 and delisting from Nasdaq unless the company appeals and requests a hearing before a Hearings Panel by 4:00 Eastern Time on October 8. On October 2, the company submitted an appeal to Nasdaq requesting a hearing before a Hearings Panel at which it intends to present its plan to regain and thereafter maintain compliance with all applicable Nasdaq listing requirements. The appeal automatically suspends any potential delisting through at least October 23, 15 calendar days from the date the request for hearing was due. In connection with its request for a hearing, however, the company has also requested a stay of the suspension of trading and delisting of its common stock and warrants, pending the later hearing and decision of the hearings panel. The company has been informed that hearings are typically scheduled to occur approximately 30-45 days after the date of the hearing request. The company intends to file the Forms 10-Q in the next 30-45 days. A panel will notify the company by October 18 of its decision to allow the company to continue to trade on Nasdaq pending the later hearing and a decision by the hearings panel. There can be no assurance that the panel will grant the company’s request for continued listing or stay the delisting of its common stock and warrants and there can be no assurance that the company will file the Forms 10-Q by the hearing’s scheduled date.