Paradigm Genetics, Inc. (NASDAQ: PDGM) today announced that
it received the anticipated notice from Nasdaq on January 24,
2003 indicating that the company’s common stock is subject to
delisting from the Nasdaq National Stock market due to failure
to comply with the $1.00 minimum bid price requirement for
continued listing set forth in Marketplace Rule 4450(a)(5).
Paradigm is in compliance with all other Nasdaq National Market
criteria under Maintenance Standard 1 and intends to file a
request for a hearing before the Nasdaq Qualifications Panel to
appeal the staff determination. The company’s stock will
continue to be traded on the Nasdaq National Market pending the
final decision by Nasdaq.
"We view the $1.00 minimum bid price as a
short-term challenge," said Heinrich Gugger, Ph.D., president
and CEO of Paradigm Genetics. "We have been gaining excellent
momentum on the execution of our strategic plan. The award of
the five-year, $23.8 million toxicogenomics contract from the
National Institute of Environmental Health Sciences received in
October 2002 is a validation of our company and technology."
Dr. Gugger continued, "In recent months, we have
implemented a number of actions to enhance our overall business,
reduce operating losses and strengthen our cash position,
including the shifting of expenses from SG&A to R&D, potential
divestiture of ParaGen, rescope of the Monsanto collaboration
and the strengthening of the senior management team. We view
these strategic actions as long-term value drivers for the
company in our commitment to increase shareholder value."
In addition to the appeal, Paradigm is exploring
various alternatives to avoid delisting of its common stock,
including a transfer to the Nasdaq SmallCap Market. A move to
the Nasdaq SmallCap Market would extend the grace period for the
$1.00 minimum bid price requirement to at least April 23, 2003,
with the potential for an additional grace period. There is no
assurance that the Nasdaq Qualifications Panel will decide to
allow Paradigm to remain listed or that Paradigm’s actions will
prevent the delisting of its common stock from the Nasdaq
National Market. Paradigm will not be notified until the Nasdaq
Qualifications Panel makes a formal decision on the appeal.
Paradigm is a biotechnology company aiming to
increase R&D productivity by focusing its integrated suite of
technologies on the product development cycle, from target
discovery to subsequent enhancement of the safety and efficacy
profiles of development candidates in agriculture and human
health. Paradigm chooses a systems biology approach to
understand gene function in the context of biological pathways,
to develop assays and biomarkers for molecular diagnostic
solutions tailored to the needs of our partners.
