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Genaissance May Get Nasdaq Warning Letter as Stock Hovers Below $1 for 30 Days

NEW YORK, Sept. 18 - Genaissance Pharmaceuticals may soon receive a warning from the Nasdaq exchange for failing to keep its share price above $1 for 30 consecutive trading days.

 

If Genaissance's stock closes below $1 this afternoon it will mark 30 consecutive days below the minimum requirement, which will prompt the Nasdaq to issue a deficiency notice. The company, whose stock last traded above $1 on Aug. 7, will have 90 days to get its share price trading above that minimum or risk being delisted to the over-the-counter market.

Shares in Genaissance closed at $.83 yesterday.

 

Joseph Keyes, CFO of Genaissance, said the company is currently considering how to deal with the situation.

 

Last month Genaissance laid off 20 percent of its workforce and appointed as CEO Kevin Rakin, previously president and CFO. The company said the layoffs were part of a cost-reduction strategy aimed at counteracting tough capital markets and various commercialization and partnership agreements have been taking longer to close.

 

The layoffs "should allow Genaissance to achieve a breakeven point in the next three years without a need to raise additional capital," said Rakin, who replaced Gualberto Ruano in the corner office.

 

If the Nasdaq issues the letter, it would come three weeks after Genaissance's top executives tried to stir investor confidence by buying up 28,000 shares of stock. The move cost the executives--Rakin, CSO Ruano, CTO Gerald Vovis, and informatics senior VP Richard Judson--between $23,800 and $26,600.

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