NEW YORK, Jan. 7 (GenomeWeb News) - Lynx Therapeutics announced after market close today that it received a delisting warning from Nasdaq on Jan. 4.
According to the Nasdaq Staff Determination letter, the company's securities are subject to delisting from the Nasdaq SmallCap Market due to its failure to hold an annual meeting of stockholders by Dec. 31, 2004.
Lynx said that it has delayed the annual meeting until a proxy statement filed with the Securities and Exchange Commission on Oct. 29, 2004, has been approved by the SEC. The company said in a statement that it has "tentatively" scheduled its annual meeting for Feb. 17, 2005, in order to approve its proposed merger with Solexa, which it still plans to complete by the end of the quarter.
"We will appeal this decision as we plan to hold an annual meeting of stockholders during the current quarter to vote on our proposed business combination with Solexa," Mary Schramke, Lynx's acting CEO, said in a statement.
The company said that its stock will continue to be listed on the Nasdaq SmallCap Market pending a final ruling of the Nasdaq Listing Qualifications Panel.
Schramke added that the notice "does not come as a surprise as we elected to avoid the costs of holding multiple annual stockholders' meetings in a relatively short time period."
Following the upcoming stockholders' meeting, she said the company will be "in full compliance with Nasdaq listing requirements."
Schramke said that Lynx has filed an application for initial listing of its shares following the merger with Solexa.
Lynx is also struggling to meet a requirement that its stock trade above $4.00 for 90 trading days preceding the merger with Solexa. The company said in SEC filings that its does not currently satisfy the minimum bid price and intends to effect a reverse split of its outstanding shares in order to satisfy these requirements.
The company's shares closed at $3.63 today.