Nasdaq

The disclosure comes less than a week after the company said that it was out of compliance with the Nasdaq's minimum shareholder equity requirement.

Nasdaq told the company that as of June 30 its shareholder equity does not meet the minimum $2.5 million required for its shares to remain listed on the exchange.

The company markets two tests for skin cancer, including DecisionDx-Melanoma for identifying high-risk Stage I and II cutaneous melanoma patients.

Nasdaq told the company that its shares have failed to meet a minimum $1 per share closing price for 30 consecutive days and may face delisting action.

The firm, which markets a clinical immunosequencing assay for leukemia and multiple myeloma, had originally expected to sell its shares at $15 to $17 apiece.

The company, which also trades on the Australian Securities Exchange, has 45 days to submit a plan to the Nasdaq as to regaining compliance.

The cancer diagnostics developer said it was undertaking the reverse stock split in order to meet the Nasdaq's $1 minimum bid price requirement.

Last month, the company announced two transactions that it said would enable it to regain compliance with the Nasdaq's listing requirement.

An analyst said the DetermaVu test could potentially be best in class for lung cancer diagnosis and that CMS could begin reimbursing for it in late 2020.