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Alere Out of Compliance With NYSE Listing Rules

NEW YORK (GenomeWeb) – Alere said Tuesday in a Form 8-K filed with the US Securities and Exchange Commission that it received notice that it is not in compliance with the New York Stock Exchange's continued listing requirements, after the firm failed to file its annual report 10-K in a timely manner.

In a letter to Alere on Friday, the NYSE noted that it may "commence delisting proceedings at any time if it deems that the circumstances warrant" that action, Alere said.

NYSE also told Alere that it has an additional six months from March 16 to file its 2016 annual report with the SEC in order to regain compliance. Alere noted the NYSE may also extend the deadline up to six additional months for the firm to regain compliance, "depending on the specific circumstances."

The firm said in an SEC filing last week that it is unable to file its annual report within the prescribed time without unreasonable effort or expense.

Alere noted then that it was delaying its filing as it continues to review aspects of revenue recognition at its Korean and Japanese locations, including inappropriate conduct at Standard Diagnostics, its subsidiary in South Korea. The company did not provide additional details about the inappropriate conduct.

An extension period for filing the annual report with the SEC expired on March 16.

It's not the first time in recent years that Alere has delayed a financial filing. The firm also was late in filing its 10-K form with the SEC last year, putting a wrinkle in the firm's proposed acquisition by Abbott.

Abbott agreed early in 2016 to pay $5.8 billion to acquire Alere, but uncertainty soon emerged because Alere delayed filing its 2015 10-K report. Abbott requested termination of the acquisition, but Alere refused Abbott’s termination request, and Alere received a grand jury subpoena from the US Department of Justice over sales practices and dealings in Africa, Asia, and Latin America.

With respect to filing of its 2016 annual report, Alere said that it will file it "as soon as practicable."