BOSTON, Aug. 5 - InforMax soon will likely become the second pure-play genomics company to receive a warning from the Nasdaq exchange for failing to keep its share price above $1 for 30 consecutive days.
If InforMax's stock closes below $1 this afternoon it will mark 30 consecutive days below the minimum requirement, prompting the Nasdaq to issue a deficiency notice. The company, whose stock last traded above $1 on June 23, will then have 90 days to get its share price trading above that minimum or risk being delisted to the over-the-counter market.
Shares in InforMax were trading at $.68 as of 4:00 p.m. Eastern time.
John Green, CFO and COO of InforMax, said the company's goal is to hold on until it begins rolling out new products at the end of the third quarter and into the fourth quarter.
"Our overall business fundamentals are good, and it's also important for customers in the marketplace to realize--and I'm sure that they do--that were our stock price lies does not have an impact on our company's operations, nor in the fact that we have a very sound cash position and liquidity situation."
Green said that beside the $25.9 million InforMax had in cash and cash equivalents as of June 30, the company also owns roughly $25 million in Treasury bills and commercial paper, both "low-risk and short-term investments," said Green.
The last company to be handed a deficiency notice by the Nasdaq--and the first Genome Technology Index firm--was Genomic Solutions, which received its warning on June 14. One month later it was bought for $26 million by Harvard Bioscience.
Green declined to comment on whether InforMax has considered recently or will entertain in the future that same option, though he said the company "is open to all options."
Nasdaq officials are barred from discussing companies traded on the exchange.