NEW YORK (GenomeWeb) – Response Genetics said on Tuesday that it has been notified by the Nasdaq that it is not in compliance with a requirement to continue listing its shares on the exchange.
In a document filed with the US Securities and Exchange Commission, the Los Angeles-based molecular diagnostics company said it received a letter on June 20 from the Nasdaq staff stating that for the previous 30 consecutive business days, its shares had closed below the minimum $1 per share bid price for continued listing on the Nasdaq Capital Market.
Response Genetics has 180 days, or until Dec. 17, to regain compliance by lifting the bid price to at least $1 per share for 10 consecutive business days before the deadline. If it fails to do so, the company may be given an additional 180 days to regain compliance if it meets other listing requirements, excepting the $1 minimum bid price condition. The firm would also need to provide written notice to Nasdaq that it intends to meet the bid price requirement by carrying out a reverse stock split, if necessary.
Nasdaq may move to delist Response Genetics' shares if it believes the company will not be able to meet all listing conditions. Response Genetics said in its SEC document that it will monitor the stock's bid price and its minimum market value "and will consider options available to it to achieve compliance."
In morning trading on Wednesday, the company's shares were up about 2 percent to $1.03.