DragonWave shareholders voted at a special meeting Tuesday to consolidate shares in an effort to avoid being delisted from the Nasdaq stock exchange.
DragonWave's Peter Allen. (Photo by Mark Holleron)
DragonWave shares need to be at $1 by the end of February to avoid being delisted.
It was a tough 2015 for the Ottawa-based firm which has seen revenue dry up from its Nokia channel after that company’s acquisition of Alcatel-Lucent, a DragonWave competitor.
The company also experience a glitch in a product rollout to a new customer in India, a glitch which is still having repercussions even now that the initial problem has been resolved.
CEO Peter Allen said in a recent earnings report conference call the company is transitioning its business to position its products directly to customers.
That means while it will still provide Nokia with its legacy products, it will also compete with it to offer its customers another choice.
“Our focus is to restore the choice of DragonWave products to those operators, a choice that we believe delivers differentiated value because of our unsurpassed capacity and spectral efficiency.”