NEW YORK (GenomeWeb) – In a filing with the US Securities and Exchange Commission today, Transgenomic said it has received notice from the Nasdaq that it has failed to comply with the minimum stockholders' equity requirement for continued listing.
The Nasdaq requires listed companies to maintain stockholders' equity of at least $2.5 million. Transgenomic now has 45 calendar days, until June 6, to submit a plan to the Nasdaq outlining how it intends to regain compliance with that requirement. If the firm's plan is accepted, Nasdaq could grant it an additional 180 calendar days, until October 17, to put the plan in motion and regain compliance.
In February, Transgenomic also received notice from the Nasdaq that it was not in compliance with the $1.00 minimum bid price required for continued listing for the 30 consecutive business days leading up to Feb. 23. At that time, the company was given 180 calendar days, or until August 22, to regain compliance with that rule, and bring its stock price up to $1.00 or more per share for at least 10 consecutive business days. If Transgenomic does not regain compliance within the allotted compliance period, including a potential extension of another 180 calendar days, Nasdaq will provide notice that the company's common stock will be subject to delisting.
"Transgenomic intends to monitor the closing bid price of its common stock and consider its available options to resolve its noncompliance with the minimum bid price requirement and the minimum stockholders' equity requirement," the company said in its filing. "There can be no assurance that Transgenomic will be able to regain compliance with the minimum bid price requirement or the minimum stockholders' equity requirement or will otherwise be in compliance with the other listing standards for the Nasdaq Capital Market."
The company recently reported that its 2015 sales fell 24 percent compared to 2014, and that its net loss for the year more than doubled to $34.3 million, or $2.78 per share, from $15.1 million, or $2.01 per share, the year before.
Transgenomic's shares were trading at $.64 on Tuesday afternoon, the same as its closing price on Monday.