An anonymous director reports
AETERNA ZENTARIS RECEIVES NASDAQ NOTICE OF NON-COMPLIANCE; NO IMMEDIATE IMPACT ON LISTING
On April 8, 2020, Aeterna Zentaris Inc. received notice from the listing qualifications department of the Nasdaq Stock Market LLC indicating that the company is not in compliance with the minimum $1-per-share bid price requirement set forth in Nasdaq listing Rule 5550(a)(2), as the bid price for the company's common stock had closed below $1 per share for the prior 30-consecutive-business-day period, and that the company has been provided a grace period of 180 calendar days, through Oct. 5, 2020, to evidence compliance with that requirement. The grace period was granted pursuant to Nasdaq listing Rule 5810(c)(3)(A). To evidence compliance with the bid price requirement, the company must report a closing bid price of at least $1 per share for a minimum of 10, and generally not more than 20, consecutive business days on or before Oct. 5, 2020.
The company was also notified that, based upon the net loss for the fiscal year ended Dec. 31, 2019, the company no longer satisfies the minimum net income requirement for continued listing on the Nasdaq under Nasdaq listing Rule 5550(b)(3) and does not otherwise satisfy the alternative requirements of market value of listed securities or stockholders' equity. The company plans to timely submit its plan to regain compliance with Nasdaq listing Rule 5550(b)(3) for the staff's review within the 45-day window provided. The staff has the discretion to grant the company an extension of up to 180 days, through Oct. 5, 2020, to evidence compliance with this requirement.
Nasdaq's notice has no immediate effect on the listing of the company's common shares on the Nasdaq and does not otherwise impact the company's listing on the Toronto Stock Exchange. In the event the company does not evidence compliance with the Nasdaq listing rules within any prescribed period and is not otherwise eligible for additional time to do so, the company would be subject to delisting from the Nasdaq. In that event, the company would have the right to request a hearing before a Nasdaq hearings panel, which request would stay any further action by the staff pending such hearing.
About Aeterna Zentaris Inc.
Aeterna Zentaris is a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests.
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