Sontra again faces delisting
NASDAQ has notified Sontra Medical Corp. in Franklin that for the third time in less than a year, it is danger of being delisted from the exchange.
The company, which is developing a new brand of glucose monitors, must now submit a plan to NASDAQ by December 7 describing how it will achieve a minimum of $2.5 million in stockholders' equity, $35 million market value of listed securities, or $500,000 of net income from continuing operations for the year.
Sontra says it will submit that plan by Wednesday.
It is the third delisting notice the company has received since last November, the first time its stock fell below NASDAQ’s $1 minimum bid price. After completing a 1-for-10 reverse split in August, the stock jumped briefly back over $1, but soon fell back below. Sontra received a second delisting notice due to its stock price in October, and had been working under a plan submitted to the exchange to raise it.
In a recent Worcester Business Journal cover story (see "Pandora’s Market," Oct. 2), Sontra CFO Harry Mitchell said the first delisting letter the company received unleashed a series of financial problems that were difficult to surmount, but was confident Sontra was "moving in the right direction." It received a second delisting notice later that month.
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