Exchange exit latest woe for biopharma firm following failed drug trial
By Charlie Howard
For the Camera
Link to Story: Here
Officials at Louisville-based GlobeImmune Inc. (NASDAQ: GBIM) announced Tuesday that after failing to find a buyer, the company will delist its stock from the NASDAQ exchange.
The move comes after the biopharmaceutical company was unable to comply with the NASDAQ's listing standards, requiring the minimum stockholders' equity $2.5 million.
Additional standards require the market value of all securities to be worth $35 million and the net income should be at least $500,000 in the last two of three most recently completed fiscal years.
GlobeImmune, founded in 1995, went public in July 2014 after postponing the offering in 2012.
The company's share price dropped 36 percent the Wednesday after the announcement continued to drop, closing at 95 cents Thursday.
GlobeImmune last year began planning a restructuring effort when clinical trial results for its hepatitis B drug revealed that the drug did not show a reduction of the disease at the end of a 24-week study.
Only two full-time employees (one scientist and one financial and accounting officer) and one half-time worker (CEO Timothy Rodell) are still employed there, according to a March quarterly report.
The same report revealed GlobeImmune had an accumulated deficit over $226 million and cash and equivalents of $8.7 million, enough "to operate as a going concern through the middle of 2017 as we continue to evaluate strategic alternatives," Rodell wrote.
The company said that it expects to be delisted by July 25, a which point it will request to suspend its reporting obligations to the U.S. Securities and Exchange Commission.
The company also expects to begin trading it's common stock on the over the counter market's pink market after it has been officially delisted from Nasdaq.
GlobeImmune did not respond to requests for comment.