SeraCare delisted from Nasdaq amid financial reporting problems

By Angela McDaniels

Seattle, March 22 - SeraCare Life Sciences Inc. was delisted from the Nasdaq National Market at the open of business on Wednesday. The company's stock can now be found on the Pink Sheets under the symbol "SRLS."

SeraCare Life Sciences received its initial delisting notice in December after it failed to file its 10-K report for the fiscal year ended Sept. 30. The delisting was postponed when the company requested a hearing with the Nasdaq Listing Qualifications Panel, which was held on Feb. 2.

Subsequent to the hearing, the company received two additional letters from Nasdaq regarding delisting, according to a company news release. The first letter cited the company's failure to complete and file its 10-Q report for the fiscal quarter ended Dec. 31.

The second letter cited the company's announcements in its 8-K report, filed with the Securities and Exchange Commission on March 15, that:

• After an internal review, the company found there are "material weaknesses" in its internal control over financial reporting;

• Chairman Barry D. Plost, president and chief executive officer Michael F. Crowley Jr., secretary Jerry L. Burdick and chief financial officer Craig A. Hooson were fired and asked to resign from the board of directors;

• In connection with the internal review, the company and some of the terminated executives received grand jury subpoenas from the U.S. Attorney's Office for the Southern District of California and a request from the SEC for the voluntary production of documents;

• The audit committee of the board of directors determined that the company's previously issued financial statements for the quarters ended Dec. 31, 2004, March 31, 2005 and June 30, 2005 "should no longer be relied upon" and will need to be refiled.

The Nasdaq Listing Qualifications Panel said these matters raised "significant public interest concerns" and served as an additional basis for delisting the company's securities, according to the release.

SeraCare Life Sciences is based in Oceanside, Calif., and manufactures and provides biological products and services to diagnostic, therapeutic, drug discovery and research organizations.

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