NYSE-listed Sequans announces $384M fundraise to launch BTC Treasury, subject to shareholder approval

Sequans Communications announced a $384 million fundraising initiative to create a Bitcoin treasury, subject to shareholder approval. The move comes as the company faces delisting risks due to its market cap falling below NYSE requirements.

On June 23, Sequans Communications announced plans to establish Bitcoin (BTC) treasury, marking a strategic expansion beyond its core business in 5G and 4G IoT semiconductors and modules. To fund this initiative, Sequans plans to raise approximately $384 million through private placements, issuing around $195 million in equity securities and $189 million in convertible secured debentures.

“We believe bitcoin’s unique characteristics will enhance our financial resilience and deliver significant value to our shareholders,” said Georges Karam, CEO of Sequans.

The company plans to partner with Swan Bitcoin, a U.S.-based Bitcoin financial services firm, to implement the initiative.

According to the announcement, shareholder approval is required by June 30 for the initiative to proceed. If the shareholders approve the offering at the June 30 meeting, Sequans expects to close the fundraising round on or around July 1, subject to meeting all other customary conditions.

The move comes as Sequans faces renewed pressure from the New York Stock Exchange regarding its listing compliance. On June 5, the company received an official notice from the NYSE informing it that its average global market cap had fallen below the required $50 million threshold over a consecutive 30 trading-day period, while its stockholders’ equity also remained under $50 million. This dual deficiency triggered the formal notice of non-compliance under Section 802.01B of the NYSE Listed Company Manual.

While this notice didn’t lead to an immediate delisting of Sequans’ American Depositary Shares (ADSs), it placed the company on 90-day timeline to submit a detailed business plan outlining how it intends to regain compliance with the NYSE’s listing standards within nine months. The NYSE will review this plan and decide within 45 days whether the company’s proposed actions are reasonable and achievable.

During this nine-month “Market Cap Cure Period,” Sequans’ ADSs will remain listed and traded on the NYSE, provided the company complies with other NYSE continued listing requirements.

The company has confirmed it’s actively exploring strategies and preparing a plan to restore its market cap in order to meet the exchange’s criteria. The recent initiative to raise funds for the Bitcoin treasury appears to be part of the company’s efforts aimed at boosting its market cap to regain compliance with NYSE listing requirements.