As I understand NASDAQ, and I do not claim to be an expert, an involuntary delisting to the grey sheets requires a ten day period of suspension to be an involuntary downlisting. That did NOT take place in this situation. The real fulcrum, here, is what info NASDAQ requested and what willingness or ability NEWL exhibited to satisfy the request.
My suspicion is that NASDAQ demanded updated financials and NEWL could not comply. That's where it gets complicated, because there are a bunch of ways by which late filings can be allowed, though the timeliness of NEWL reporting is notoriously deficient. My best hope, at this point, is that the delisting is a temporary situation until the hearing is held (seems unlikely to me) or the informational request is satisfied and an uplisting occurs to at least a tier above pink sheet status.
The grey sheets are a scourge, or as the expression goes, "Nobody gets out alive." It would take some huge brass ones to buy more until this gets uplisted... something that almost never happens on the grey market.
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