NEW YORK, March 28 (GenomeWeb News) - Shares in Transgenomic were down 11.11 percent, or $.07, at $.56 in early-afternoon trading --- a few cents above their 52-week low --- prompting the likelihood that the company may get a delisting warning letter from the Nasdaq exchange on Wednesday.
If the stock fails to climb to above $1 by the close of market on Wednesday, it will mark 30 consecutive trading days that the shares have closed below $1. IN this case, Transgenomic will receive a warning letter from the Nasdaq threatening the firm with being delisted from the exchange.
Transgenomic's shares last closed above $1 on Feb. 14 when they closed at $1.04.
The Nasdaq exchange typically sends its listed companies such letters if their shares close below $1 for 30 consecutive trading days. The warning gives the company 90 days to return its closing share price to above $1. If the company fails to raise the price above $1 within 90 days after receiving the letter, and fails to maintain a closing price above that threshold for 10 trading days, it will be downgraded to the Nasdaq small-capitalization market.
A Transgenomic official did not immediately return a telephone call seeking comment.