Ms. Jenene Thomas reports
AETERNA ZENTARIS RECEIVES NASDAQ NOTIFICATION REGARDING MINIMUM BID PRICE COMPLIANCE; NO IMMEDIATE IMPACT ON LISTING
On July 27, 2020, Aeterna Zentaris Inc.
received notice from the listing qualifications department of the Nasdaq Stock Market indicating that, based upon a closing bid price of less than $1 per share for the company's common stock for the prior 30-consecutive-business-day period, the company no longer satisfies Nasdaq Listing Rule 5550(a)(2).
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the company has been provided a grace period of 180 calendar days, through Jan. 25, 2021, to evidence compliance with the rule. To evidence compliance with the rule, the company must evidence a closing bid price of at least $1 per share for a minimum of 10 consecutive business days, but generally not more than 20 consecutive business days, on or before Jan. 25, 2021. In the event the company does not timely evidence compliance with the rule, the company may be eligible for an additional 180-day grace period or may face delisting. In the latter case, the company would be entitled to request a hearing before the Nasdaq hearings panel, which request would stay any delisting action by the staff pending completion of the hearing process.
Nasdaq's notice has no immediate effect on the listing of the company's common shares on Nasdaq and does not otherwise impact the company's listing on the Toronto Stock Exchange. The company is considering the options available to it to evidence compliance with the rule prior to the expiration of the grace period.
In addition, as previously disclosed via Form 6-K filed with the Securities and Exchange Commission on July 1, 2020, Aeterna Zentaris priced an approximate $12-million public offering of its common stock and warrants, pursuant to which the company ultimately raised approximately $10.5-million in net proceeds.
As a result of the offering, the company believes it has stockholders' equity of at least $2.5-million as of the date of this filing and thereby satisfies the minimum stockholders' equity requirement for continued listing on the Nasdaq under Nasdaq Listing Rule 5550(b)(3). The company is awaiting Nasdaq's formal confirmation of such compliance and will provide additional disclosure upon receipt of a compliance determination from the staff.
About Aeterna Zentaris Inc.
Aeterna Zentaris is a specialty biopharmaceutical company commercializing and developing therapeutics and diagnostic tests.
We seek Safe Harbor.
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