NEW YORK — Australian molecular diagnostics developer Genetic Technologies said last week that it received a notice that it is out of compliance with the Nasdaq's continued listing requirements and its shares face delisting.
According to Genetic Technologies, the notice said that the company is out of compliance with a rule requiring either a minimum of $2.5 million in stockholders' equity; a market value of listed securities of $35 million; or net income from continuing operations of $500,000 in the most recently completed fiscal year or two of the last three most recently completed fiscal years.
On Nov. 6, 2019, Genetic Technologies received a letter from Nasdaq stating it had regained compliance with those listing requirements, but because it has been less than a year since it received that compliance letter and it is in non-compliance again with the same requirements, Genetic Technologies is not allowed to submit a plan to regain compliance related to its latest failure to meet the listing requirements.
As a result, Genetic Technologies must request an appeal of the Nasdaq's determination with the exchange's hearing panel before the end of the trading day on Friday. If it fails to do so, its stock will be removed from the Nasdaq.
Genetic Technologies said it intends to request the hearing, which, if accepted, will stay delisting.
During midday trading on the Nasdaq, shares of Genetic Technologies — which also trades on the Australian Stock Exchange — were down $.04 to $1.96.