Cellegy faces Nasdaq SmallCap Market delisting

By Angela McDaniels

Seattle, Nov. 23 - Cellegy Pharmaceuticals Inc. said it has received a letter from The Nasdaq Stock Market notifying Cellegy that it is not in compliance with minimum total market value requirements and may be delisted from the Nasdaq SmallCap Market.

For 10 consecutive trading days, the market value of Cellegy's common stock had been below the minimum price needed to keep the stock's total market value at or above $35 million, as required by Nasdaq.

Cellegy has until Dec. 19 to regain compliance.

Based upon 29,831,625 shares outstanding on Nov. 14, Cellegy's stock price would have to equal or exceed $1.18 for a minimum of 10 consecutive business days in order to regain compliance, the company said.

If Cellegy does not regain compliance by Dec. 19, the Nasdaq staff will provide written notification that the company's securities will be delisted. Cellegy may then appeal to a Listing Qualification Panel.

If the company's common stock is delisted from the Nasdaq SmallCap Market, Cellegy said it would likely seek to have the common stock traded at the over-the-counter Bulletin Board.

Delisting from The Nasdaq SmallCap Market will likely reduce the liquidity of Cellegy's common stock, result in a lower stock price and could have an adverse effect on Cellegy, the company said.

Nasdaq notified Cellegy that it does not satisfy alternate standards for continued listing, in which Nasdaq requires a minimum stockholders' equity of $2.5 million or $500,000 net income from continuing operations in the most recently completed fiscal year or in two of the last three fiscal years.

Cellegy is a biopharmaceutical company based in Huntingdon Valley, Pa., that develops and commercializes prescription drugs for the treatment of women's health care conditions.

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