NEW YORK (GenomeWeb News) – Decode Genetics said today that it has requested a hearing before a Nasdaq Listing Qualifications Panel to present its plans for regaining compliance with a Nasdaq market rule regarding the market value of its stock.
The Reykjavik, Iceland-based firm received a letter from Nasdaq in early October stating that for 10 consecutive trading days the market value of its common stock was below $50 million, the minimum level required for continued listing on the Nasdaq Global Market. The firm’s shares also did not comply with an alternative test set forth by a Nasdaq rule, which requires total assets and total revenue of $50 million each for the most recently completed fiscal year or two of the last three most recently completed fiscal years.
According to that letter, Decode’s stock is subject to delisting at the opening of business on Nov. 11, if it doesn’t regain compliance. Decode said that its shares would continue to be listed on the exchange pending conclusion of its hearing, which is expected to take place within 45 days. The firm also noted that the Nasdaq panel has the discretion to grant a listing extension for up to 180 days from the date of staff notification for the company to regain compliance with regulations.
Decode said that it may apply to transfer its securities to the Nasdaq Capital Market if it satisfies the continued inclusion requirements for that market, which include a minimum aggregate market value of listed securities of $35 million. As of yesterday’s stock market close, Decode’s market value of listed securities was $26.6 million, based on a closing price of $.43 per share.