NEW YORK, April 7 - Valentis said that it received a Nasdaq staff determination letter on March 28 for not maintaining a sufficient number of independent members of its board of directors and for violating a shareholder approval requirement.
Nasdaq warned that the company did not comply with audit committee composition requirements, as described in rules 4350(c) and 4350(d)(2), which call for an audit committee of at least three independent members, at least one of whom has had past employment experience in finance or accounting.
The letter also stated that Valentis granted a stock option that did not comply with the shareholder approval requirement set forth in rule 4350(i)(1)(A), which requires shareholder approval when stock is acquired by officers or directors.
Valentis said that is has submitted a written response to Nasdaq stating its reasons for believing it is in compliance with the above-mentioned rules.
In August, Valentis received a warning that its market capitalization failed to comply with Nasdaq's $50 million minimum. The company avoided delisting in November with a restructuring plan that included a reverse stock split and a conversion of its Series A preferred stock to common stock.