Biostage (BSTG -21%) slumps on increased volume after its announcement that it may be delisted from Nasdaq due to it failure to rectify deficiencies related to minimum bid price ($1/share) and minimum stockholders' equity ($2.5M).
The company says it will request a hearing before the Hearings Panel during which it will present its plan to address the issues and request an extension of the deadline (no later than November 14).
Thinly traded nano cap Biostage (NASDAQ:BSTG) slumps 37% premarket on robust volume in response to the pricing of its public offering of 20M shares of common stock at $0.40. Closing date is February 15.
Among the benefits of Orphan Drug status is a seven-year period of market exclusivity for the indication, if approved.
The regenerative implant is based on the company's Cellframe technology in which a patient's stem cells, taken from a biopsy of fat tissue, are grown in the lab on a biocompatible scaffold and then implanted at the injury site.
The company expects to file its IND in Q3 2017 followed by the start of a Phase 1 study in Q4.
Nasdaq notifies Biostage (NASDAQ:BSTG) that it is not meeting listing requirements since its bid price has not been at least $1 for 30 consecutive business days. It has until May 17, 2017 to address the issue.