(Alliance News) - Midatech Pharma PLC on Monday said it has secured a notification from NASDAQ Stock Market LLC stating that Midatech share price is not in compliance with the minimum bid requirement for continued listing on NASDAQ Capital Market in New York.
Midatech explained that one of the NASDAQ listing rules requires the company's shares to maintain a minimum bid price of USD1.00 per share. A failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days.
Based on the Midatech's American depositary share price of USD0.58 as of Tuesday, it no longer meets the minimum bid price requirement. Each ADS represents 20 Midatech shares. In London, Midatech shares closed up 4.4% at 2.40 pence each on Tuesday.
Looking ahead, the AIM-listed biotechnology firm said it has a grace period of 180 days, or until June 8 next year, to regain compliance with the minimum bid price requirement, meaning that Midatech shares should meet or exceed USD1.00 per share for at least ten consecutive business days during the compliance period.
If the shares do not regain compliance with the minimum bid price requirement during the compliance period, Midatech said it may be eligible for an additional grace period of 180 calendar day.
If it does not regain compliance during the initial grace period and is not eligible for an additional grace period, its shares will be delisted from NASDAQ Capital Market.
In that event, Midatech said it may appeal such determination to a hearing panel.
"The company intends to monitor the bid price of its depositary shares during the compliance period and will consider taking such actions as may be necessary and appropriate to achieve compliance with continued listing requirements prior to the expiration of all available grace periods," Midatech said in its statement Tuesday.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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