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Response Genetics Borrows $2M; Faces June Deadline to Remain Listed on Nasdaq

NEW YORK (GenomeWeb) – Reponse Genetics said today that it has entered into a second amendment to a $12 million credit agreement. 

Separately, the company recently said that it has until June to comply with Nasdaq requirements in order for its stock to remain listed on the exchange. 

Response drew an additional $2 million from its credit agreement, increasing the total amount advanced to the company under the agreement to $12 million, it said in a document filed with the US Securities and Exchange Commission. Response and SWK Funding announced the credit agreement last summer to provide the firm with a term loan of up to $12 million. At the time, Response drew the first tranche of $8.5 million of the credit facility and then drew a second tranche of $1.5 million in February. 

The company said that the maturity date for the term loan remains July 30, 2020. 

Also, Response said in its Form 10-K filed with the SEC that it has a June 19 deadline to meet certain listing requirements or its shares could be delisted from the Nasdaq. 

In December Nasdaq warned the firm that its shares could be delisted for failing to meet a listing requirement of a minimum $1 bid price. Nasdaq also told the firm that it was not eligible for an extension to regain compliance because it did not meet the minimum $2.5 million in stockholders' equity needed for continued listing. 

Response appealed the delisting determination, and in February it was granted a request to continue listing on the Nasdaq, Response said in its Form 10-Q. It has until June 19 to comply with terms laid out by a Nasdaq Hearing Panel in order to remain listed on the exchange. Otherwise, the panel will issue a final delist determination and Response will be suspended from trading on the Nasdaq, it said. 

It added that it is "in the process of complying" with the conditions set forth by the panel for continued listing.