NEW YORK (GenomeWeb News) – Vermillion said yesterday that it would request a hearing before a Nasdaq panel after it was notified by the stock exchange that it is in non-compliance with a requirement for continued listing.
The firm's shares fell sharply in Tuesday afternoon trade in response to the news.
According to a filing with the US Securities and Exchange Commission, Vermillion said that it had received a letter from Nasdaq on March 25, which said that the firm is not in compliance with a rule that stipulates companies’ securities must have a market value of at least $35 million to retain listing on the exchange. The letter is the second one sent to Vermillion over the past two months that cautioned the firm was not in compliance with that rule.
The Fremont, Calif.-based company was given until March 24 to regain compliance by having the market value of its listed securities rise to $35 million or more for a minimum of 10 consecutive business days. The firm’s shares did not meet that requirement.
Vermillion said it expects a hearing before a Nasdaq panel to take place within the next 45 days, but noted that there is no assurance the Nasdaq panel will grant the company’s request for continued listing.
The firm also noted in the filing that it is now in compliance with Nasdaq’s rule for maintaining a minimum closing price of $1.00 per share for at least 10 consecutive business days. Vermillion achieved compliance after a 1-for-10 reverse stock split in early March.
Vermillion’s shares were down 26.9 percent at $2.31 in late Tuesday trade.