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January 7, 2008 |
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PSIVIDA: Receives 180-day Notice to Regain Bid Price Compliance On December 27, 2007, Psivida Ltd. received a letter from the NASDAQ Listing Qualifications Department notifying the company that, for the last 30 consecutive business days, the bid price of the company’s American Depositary Shares has closed below the minimum US$1.00 per share required for continued listing on the NASDAQ Global Market under Marketplace Rule 4450(a)(5). In accordance with Marketplace Rule 4450(e)(2), NASDAQ will provide the company with 180 calendar days, or until June 24, 2008, to regain compliance. If at any time before June 24, 2008 the bid price of the Company’s ADSs closes at US$1.00 per share or more for a minimum of 10 consecutive business days, NASDAQ will provide written notification that the Company has achieved compliance with Marketplace Rule 4450(a)(5). If compliance with Marketplace Rule 4450(a)(5) cannot be demonstrated by June 24, 2008, NASDAQ will provide written notice that the Company’s securities will be delisted from the NASDAQ Global Market. At that time, the Company may appeal NASDAQ’s determination or, if the Company satisfies the requirements of Marketplace Rule 4310(c) other than the minimum bid requirement, the Company may apply to transfer its securities to the NASDAQ Capital Market, in which case, if the Company’s application is approved, the Company will be afforded the remainder of the Capital Market’s second 180 calendar day period to regain compliance while on the NASDAQ Capital Market. During the provided compliance periods, the Company will seek to regain compliance. The Company will also continue to monitor its stock price closely and will consider its options for regaining compliance in the event that its stock price remains below $1.00. No assurances can be made at this point as to whether the Company will regain compliance. pSivida's Managind Director, Dr. Paul Ashton says, "The Company is committed to regaining compliance, and are pursuing various strategies including the potential of non-dilutive capital. The Company believes its current cash position, together with the expected development funding from Pfizer and the remaining US$1.5 million due in April related to the sale of a subsidiary, is sufficient to contiue operations until at least September 30, 2008." About pSivida Ltd. pSivida Limited -- http://www.psivida.com/ -- is an Australian company existing pursuant to the Australian Corporations Act 2001 with shares listed on the Australian Securities Exchange, the NASDAQ Global Market, the Frankfurt Stock Exchange, and London's OFEX International Market Service. The company is committed to biomedical applications of nano-technology and has as its core focus the development and commercialization of drug delivery products in the healthcare sector, initially in ophthalmology and oncology. The company's corporate headquarters is located at: Level 12 BGC Centre 28 The Esplanade Perth WA 6000, Australia Tel No. (+61 8) 9226 5099 The legal entity that became pSivida was incorporated as the Sumich Group Ltd in April 1987. The Sumich Group operated a business that was placed into administration or receivership in 1998. pSivida was subsequently formed on December 1, 2000, upon entering into a court-approved arrangement with Sumich Group's creditors, which fully extinguished all prior liabilities as of that time. Subsequently, the company appointed new directors and officers and re-listed on the Australian Securities Exchange as pSivida. The company was then recapitalized through a placement to investors of 9.3 million ordinary shares at AU$0.30 per share, raising AU$2.79 million. pSivida revealed that it has not made substantial divestitures in the past three fiscal years through the present. Going Concern Doubt After auditing the company's consolidated balance sheet as of June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered Accountants, said that as of Oct. 31, 2006, pSivida has determined there may be a risk of default associated with maintaining the US$1.5 million minimum cash balance. In the event of a default, the noteholder is entitled to call the full value of the liability. This risk of default, together with the company's recurring losses from operations and negative cash flows from operations, raise substantial doubt about its ability to continue as a going concern. Deloitte notes that the financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
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