Latch notifies Nasdaq that it does not expect to meet delinquent filing deadline

Latch announced it has notified the hearings panel of The Nasdaq Stock Market LLC that the company does not anticipate regaining compliance with its periodic filing obligations on or before its August 4, 2023 deadline due to unexpected delays in the ongoing restatement of its historical financial statements. As a result, Latch expects Nasdaq to issue a delisting determination, causing the company’s securities to be suspended from trading on Nasdaq. Once the suspension takes effect, Latch expects that its securities will be traded on the OTC Expert Market. The transition to the OTC markets will not change Latch’s commitment to enhancing operational discipline and efficiency within the organization. As of July 31, 2023, the company’s total cash and cash equivalents and current and non-current available-for-sale securities was approximately $192 million. As announced on July 10, 2023, the company has commenced a reduction in force of approximately 59% of its full-time employees, which it expects to complete by November 1, 2023. These strategic measures, along with the recently announced senior management additions, are intended to build a solid foundation for future growth. “Latch has, and will continue to, work diligently to complete the restatement and remains committed to regaining compliance with its periodic filing obligations as soon as possible,” said Latch’s Interim CEO, Jason Keyes. “Despite these unforeseen delays related to the restatement, I remain excited about Latch’s future. As always, the company is committed to providing excellent products and services to its customers.” As previously announced, Jamie Siminoff and Dave Lillis are expected to be appointed as the company’s Chief Executive Officer and Chief Financial Officer, respectively, later this year.