Motif Bio told it is in breach of Nasdaq listing rules
MOTIF BIO
£0.01
08:30 29/07/20
Motif Bio has received a deficiency notice from Nasdaq, indicating that based upon a review of its market value of listed securities (MVLS) for the last 30 consecutive business days, the company no longer met the minimum standard for continued listing on the Nasdaq Capital Market.
The AIM-traded firm explained that the Nasdaq Marketplace Rules required it to have a minimum MVLS of $35m.
It said that the Nasdaq notification letter had no immediate effect on the listing or trading of its American Depositary Shares on the Nasdaq Capital Market.
Under Nasdaq regulations, Motif Bio would have until 14 January - 180 calendar days from the date of the notice - to regain compliance with the exchange's continued listing standard.
If Motif Bio did not regain compliance with the rule by that date, Nasdaq would provide notice that Motif Bio's American Depositary Shares would be delisted from the Nasdaq Capital Market.
At that time, the company could appeal the delisting determination.
The board said it would seek to regain compliance within the specified period, and was considering appropriate business measures to address compliance.
It also acknowledged that it did not currently meet another Nasdaq Listing Rule, which requires listed securities to maintain a minimum bid price of $1.
Based on the closing bid price of its American Depositary Shares over recent weeks, the firm said it anticipated it was likely to receive a deficiency notice from Nasdaq under that rule shortly.
“This action by Nasdaq is not uncommon for publicly traded biopharmaceutical companies that have had clinical or regulatory setbacks that negatively impact stock price,” said chief executive officer Dr Graham Lumsden.
“Motif Bio is working diligently to regain compliance by creating additional shareholder value through advancing the development of iclaprim as well as strategic pipeline expansion as outlined in our previous communications.”