RegulatoryJun 23, 2026, 04:12 PM
TON Strategy avoids delisting after Nasdaq reprimand for rule violation
AI Summary
TON Strategy Co. received a Letter of Reprimand from Nasdaq on June 18, 2026, for violating Listing Rule 5635(c) concerning shareholder approval for equity awards. The company had inadvertently issued excess awards under its 2019 Stock and Incentive Compensation Plan without proper shareholder approval. Nasdaq decided against delisting, acknowledging the company's self-reporting and lack of deliberate intent to avoid compliance. The matter is now closed, and TON Strategy's shares will continue to be listed.
Key Highlights
- Received Nasdaq Letter of Reprimand on June 18, 2026.
- Violated Nasdaq Listing Rule 5635(c) regarding shareholder approval.
- Inadvertently issued equity awards in excess of the 2019 Plan.
- Nasdaq determined no deliberate intent to avoid compliance.
- Company's shares will continue to be listed on Nasdaq.
- Matter is now closed with no further action required.
- Company self-reported the possible violation on March 27, 2026.
- Company obtained subsequent shareholder ratification for prior grants.
Price Impact
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