Holliston biotech delisted from NASDAQ
PHOTO/FILE
Biostage CEO Jim McGorry (left) and Chief Medical Officer Saverio La Francesca.
Holliston biotechnology firm Biostage, Inc. was delisted from the NASDAQ on Friday because its stock price was too low.
Biostage said in a press release it requested a hearing with the NASDAQ Hearings Panel in July and the panel granted the company’s request for continued listing, but the company determined that it couldn’t meet those requirements by NASDAQ’s deadline of Nov. 13
Biostage first received a notice from NASDAQ last November indicating the company wasn’t in compliance with NASDAQ’s minimum bid requirement. This May, NASDAQ notified Biostage due to the noncompliance with that requirement and with a $2.5-million minimum stockholders equity requirement, the company’s common stock would be delisted.
The company's stock will now be listed by OTC Markets Group on its OTCQB marketplace and be eligible for trading at the start of business Friday.
According to Biostage, the company is experiencing significant capital issues due to an investment agreement that has fallen through. It had entered into a securities purchase agreement with Dallas investment firm First Pecos, LLC on Aug. 11 in which the company agreed to sell shares of its common stock, preferred stock and warrants for just over $3 million.
However, the company, has of Friday, has not received the money from First Pecos, Biostage claims in the release.
According to Biostage, First Pecos claims Biostage is in breach of its obligations pursuant to the investment agreement. Biostage claims it met new demands of First Pecos, but the company still did not deliver the purchase price.
As a result, Biostage's current financial obligations exceed its cash on hand, the company said.
“The company cannot provide any assurance that it will be able to obtain sufficient financing,” Biostage said in the release.
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