NEW YORK (GenomeWeb) – Genetic Technologies said today that it regained compliance with a listing requirement for continued listing on the Nasdaq, while the exchange has extended a deadline for the company to regain compliance with another requirement.
In August Nasdaq sent a letter to Genetic Technologies informing the firm that it wasn't in compliance with a Nasdaq listing rule calling for a minimum $1 bid on the company's shares, and as a result the firm faced a possible delisting action.
Last month Melbourne, Australia-based Genetic Technologies undertook a reverse stock split, in which the ratio of one American depositary receipt (ADR) representing 30 shares of the company's stock was increased to a ratio of one ADR representing 150 shares. As a result of that reverse stock split, Nasdaq told the company today that it has regained compliance and the matter has been closed.
Also, Genetic Technologies said that Nasdaq has extended the deadline for it to regain compliance with a listing requirement of a minimum of $2.5 million in shareholders' equity. In November Genetic Technologies was told by Nasdaq that for its fiscal year 2014 ended June 30, it had shareholders' equity of about $1.7 million. Nasdaq gave the firm until Dec. 22, 2014 to submit a plan to regain compliance.
Genetic Technologies submitted its plan in November and was told in late January by Nasdaq that it has extended the deadline to May 4 for Genetic Technologies to regain compliance with the listing rule.
In afternoon trading today, Genetic Technologies' shares were up 28 percent at $3.97.