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Rosetta Genomics Warned by Nasdaq on Second Listing Compliance Issue

NEW YORK (GenomeWeb News) – Rosetta Genomics disclosed it has been warned by the Nasdaq that it is not in compliance with a listing requirement.

In a document filed after the close of the market on Friday, the Israel-based molecular diagnostics firm said that it received a letter on April 17 from the Listing Qualifications Staff of Nasdaq saying it has determined Rosetta does not satisfy a listing requirement of at least $2.5 million in stockholders equity, if it does not have a market value of at least $35 million or net income from continuing operations of at least $500,000 for at least two of the three past most recently completed fiscal years.

Rosetta has through June 1 to submit a plan detailing how it will regain compliance. If the Listing Qualifications Staff accepts the plan, Rosetta would receive an extension of up to 180 calendar days, or through Oct. 15, to regain compliance. If the Listing Qualifications Staff rejects Rosetta's plan, the company may appeal the decision to the Nasdaq Listing Qualifications Panel.

Rosetta's stock will remain trading on the Nasdaq Capital Market during the exchange's review process, Rosetta said.

The company also faces possible delisting action because it is in non-compliance with another Nasdaq listing requirement calling for a minimum share bid price of $1. It has until May 29 to regain compliance on that requirement.

Rosetta's shares have not traded above $1 since October. The firm's shares closed at $.18 in Friday trade.

Earlier this month, Rosetta said that full-year 2011 revenues dropped 63 percent year over year to $103,000, and warned that it expected a Nasdaq warning of its non-compliance with the $2.5 million stockholder equity condition. In its Form 10-K, it said that it had a stockholders' deficiency of $356,000.

Two weeks ago, Rosetta said it had signed definitive agreements to sell shares of its stock to certain investors, aiming to raise $1.4 million. The company has said that it has enough funds to last through late May and faces a $750,000 payment due on May 22 to Prometheus Laboratories, its one-time distribution partner.