TON Strategy disclosed in an SEC filing that it received a reprimand letter from Nasdaq for breaching shareholder approval rules. The company avoided delisting, with Nasdaq considering the violations non-intentional.

The department determined that while the company failed to comply with these rules, the violations did not appear to be an intentional attempt to evade compliance.

According to PANews, TON Strategy revealed in an 8-K filing with the U.S. Securities and Exchange Commission (SEC) that it received a reprimand letter from the Nasdaq Stock Market’s Listing Qualifications Department on October 28.

The letter cited violations of Nasdaq Listing Rules 5635(a) and 5635(b), which govern shareholder approval requirements related to equity issuances and changes in control. Nasdaq determined that although TON Strategy failed to comply with these rules, the violations did not constitute an intentional attempt to evade compliance.

As a result, Nasdaq’s department concluded that issuing a reprimand letter, rather than initiating delisting proceedings, was the appropriate response.

TON Strategy’s stock remains listed on the Nasdaq exchange, and the issuance of the reprimand letter signifies that the compliance matter is now resolved.

The company emphasized that it is taking steps to enhance internal governance and ensure future compliance with all Nasdaq and SEC requirements.

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