Tel Aviv, Israel, Jan. 11, 2019 (GLOBE NEWSWIRE) -- Bioblast Pharma Ltd. (NasdaqCM: ORPN) (Bioblast or the Company), a clinical-stage, orphan disease-focused biotechnology company, announced today that it received a written notification from the Listing Qualifications Department of The Nasdaq Capital Market (Nasdaq) notifying the Company that Nasdaq has determined that Bioblasts stockholders equity does not comply with the minimum $2,500,000 stockholders equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(1).
The Nasdaq notification does not affect the listing of the Companys ordinary shares at this time.
The notification provides the company has until February 22, 2019, or 45 calendar days from the date of the notification, to submit to Nasdaq a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1). The Company currently anticipates timely submitting such a plan to Nasdaq. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the notification for the Company to provide evidence of compliance. If the plan is not accepted or the Company is not granted an extension, Nasdaq staff could provide notice that the Companys ordinary shares will become subject to delisting. In such event the Company may appeal the decision to reject its proposed compliance plan or any delisting determination to a Nasdaq Hearings Panel.
On November 19, 2018, the Company announced the entry into a definitive agreement to acquire Enlivex Therapeutics Ltd. (the Transaction). The closing of the Transaction is expected to take place during the first quarter of 2019, and, upon closing, the Company expects to regain compliance with the minimum $2,500,000 stockholders equity requirement for continued listing on the Nasdaq Capital Market, subject to Nasdaqs approval of the Companys new listing application required in connection with the Transaction. On December 27, 2018, the shareholders of the Company approved requisite resolutions required to consummate the Transaction.
Bioblast (NasdaqCM: ORPN) is a clinical-stage biotechnology company committed to developing clinically meaningful therapies for patients with rare and ultra-rare genetic diseases. For more information, please visit our website: www.bioblastpharma.com, the content of which is not incorporated herein by reference.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, the Company is using forward-looking statements when it discusses submission of a plan to regain compliance with Nasdaq, that such plan will be accepted, the Companys plan to close the Transaction and timing thereof, as well as that the Company is expected to regain compliance with Nasdaq listing rules upon closing of the Transaction. Because such statements deal with future events and are based on Bioblasts current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Bioblast could differ materially from those described in or implied by the statements in this press release, including those discussed under the heading Risk Factors in Bioblasts Annual Report on Form 20-F filed with the Securities and Exchange Commission (SEC) on April 24, 2018 and Exhibit 99.2 to Bioblasts Report on Form 6-K furnished to the SEC on December 6, 2018, and in any subsequent filings with the SEC. Except as otherwise required by law, Bioblast disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.
Bioblast Pharma, Ltd.
Dr. Dalia Megiddo, Interim CEO