Monday, March 9, 2009

Exact Sciences quickly falls back out of Nasdaq compliance

By Mass High Tech staff

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Just a little more than a month after regaining compliance with a Nasdaq rule, Exact Sciences Corp. reports that it is now out of compliance again with a rule requiring a minimum market value.

The Marlborough-based company got notice from the Listing Qualifications Staff of the Nadaq Stock Market that it has been unable to maintain a minimum $35 million in market value of listed securities, or stockholders’ equity of at least $2.5 million — conditions required for continued listing on the Nasdaq Capital Market.

Exact Sciences (Nasdaq: EXAS) has been given 90 calendar days, or through June 4, to get back into compliance with the rule. The company has to meet those minimum requirements for at least 10 consecutive business days or reach stockholders’ equity of at least $2.5 million. If not, Exact’s stock may be subject to delisting.

According to company officials, Exact Sciences may appeal the Staff’s determination to a Listings Qualifications Panel, which would stay any delisting action by the staff pending the panel’s review. Exact Sciences says it is exploring options to get back into compliance.

In late January, Exact Sciences was facing potential delisting from an August Nasdaq Staff Letter about noncompliance, when it announced the panel has concluded its review and allowed the stock to remain on the capital market “subject to no further conditions.” Earlier that month, its board of directors unanimously rejected a buyout proposal from Sequenom Inc. in favor of “pursuing a strategic alternative.” Subsequently, it  announced a strategic deal with biotech firm Genzyme Corp. worth $24.5 million.

Exact Sciences reported a net loss of $11.96 million for 2007, on revenue of $1.8 million.