(Alliance News) - Motif Bio PLC said Tuesday it intends to voluntarily de-list its American depository shares from New York-based Nasdaq Capital Market.
Shares in the AIM-listed clinical-stage biopharmaceutical company closed 8.4% lower in London on Tuesday at 0.45 pence each.
Motif Bio expects to file its application to de-list from Nasdaq a week on Thursday, with its last trading day on the US stock exchange on December 16.
"After review and careful consideration of ‎the administrative burden and costs and benefits of being a Nasdaq-listed, reporting company, as well as the uncertainties of the company being able to re-gain and maintain compliance with the Nasdaq requirements for continued listing, ‎the company has made the decision to voluntarily delist its ADSs and warrants from the Nasdaq Capital Market. The savings derived from this delisting are expected to be ‎material," Motif Bio explained.
In July, Nasdaq warned the firm, based on a 30 day trading sample, it failed to meet the minimum bid price rule of at least USD1.00. Motif Bio had been expecting the notice, noting it was aware it did not meet the rules, but said it had until January 21 2020 or 180 days to become compliant.
Instead, Motif Bio has decided to remove its ADRs from the stock exchange.
Last Monday, the company announced its non-executive directors - Craig Albanese, Charlotta Ginman, Zaki Hosny, Mary Polan and Andrew Powell - have resigned with immediate effect.
The AIM-listed clinical-stage biopharmaceutical company said the resignations are in line with the proposals to minimise its costs and to preserve capital.
At the end of September, the company announced an intention to conduct a corporate restructuring. In October, Motif Bio had raised GBP600,000 to implement a major restructure which would see its sell its main listeria-fighting drug iclaprim. This followed US regulators requiring iclaprim to pass further hurdles to secure new drug application status.
Motif Bio's board is now comprised of two executive directors, Graham Lumsden and Jonathan Gold, and one non-executive chair, Bruce Williams.
By Paul McGowan; paulmcgowan@alliancenews.com
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