Nasdaq issues warning to TON Strategy over $272M Toncoin purchase

Nasdaq has issued a letter of reprimand to TON Strategy (formerly Verb Technology Company) regarding its $272.7 million Toncoin purchase and associated Private Investment in Public Equity (PIPE) financing. The violation stems from the company's failure to obtain shareholder approval for the stock issuance under the PIPE financing, as Nasdaq rules require such approval when the issuance of common stock represents at least 20% of total outstanding shares. Since 48.78% of the PIPE proceeds were used for the Toncoin purchase, approval was necessary but not obtained. Despite these compliance failures, Nasdaq concluded that the violations were unintentional and not a deliberate attempt to avoid compliance, stating that delisting the company's securities is not an appropriate sanction and no further action is required.

(Source：Cointelegraph)