NEW YORK (GenomeWeb) – Canadian molecular diagnostics company GeneNews announced today that it has received notice that the Toronto Stock Exchange is reviewing its eligibility to remain listed on the TSX. GeneNews has 60 days to show that it is in compliance with the continued listing requirements of the exchange.
In early December, the company announced it was restructuring its operations, in response to financial difficulties at Innovative Diagnostics Laboratory (IDL), its joint venture with Cobalt Healthcare Consultants. The company planned to borrow $400,000 and lay off 16 IDL workers, 30 percent of the staff. It signed a one-year working capital loan agreement with a major shareholder, one of the firm's directors, bearing a 2 percent interest rate, repayable on demand, and secured against the firm's intellectual property.
GeneNews said today that the completion of its restructuring plans may positively affect its ability to demonstrate compliance with the TSX listing requirements.
The company's stock fell nearly 17 percent to less than C$.03 in morning trading on the TSX.