December 7, 2017

Biostage delisting effective Dec. 18

Biostage CEO Jim McGorry (left) and Chief Medical Officer Saverio La Francesca.

Holliston biotech Biostage will officially be delisted on Dec. 18 from the Nasdaq Stock Excahnge, after failing to keep a stock price above $1 and a $2.5 million stockholders' equity requirement, according to a new filing with the U.S. Securities & Exchange Commission.

The Nasdaq listing panel determined the company would be delisted back on May 18, but Biostage appealed that decision to a Nasdaq panel. The company was granted conditional listing after appealing the decision, but was unable to meet exception milestones as required, the Nasdaq said in Thursday's filing.

After Biostage was notified of the final ruling in October, it announced the company laid off 71 percent of its workforce as its financial obligations exceed its cash on hand.

The company claims its financial downfall was a result of a breach of agreement by Dallas investment firm Fist Pecos, which Biostage said had agreed to a $3 million investment.

The investment fell through, and Biostage said in October that it is reviewing all of its rights and remedies against First Pecos.

Stock in the company on the OTCQB exchange is currently trading at just above 6 cents, a nosedive from the 88 cents that the stock opened with in January.

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