Nasdaq warns Cardima over listing requirements
This article was originally published in Clinica
Cardima's ailing fortunes could soon spell a delisting from the US stock exchange. The Fremont, California-based company has received written notice from Nasdaq that, following a review of its third-quarter results for the period ended September 30 2004 and of its listed securities' market value, the firm had fallen below the minimum requirements to remain eligible for listing on the market.
The company has suffered significant blows in the last couple of years, running into regulatory brick walls in its bid to market its Revelation Tx ablation system for atrial fibrillation treatment (see Clinica No 1110, p 12). For its third-quarter results, Cardima had $2.4m in stockholders' equity, a steep 61% drop from the $6.3m at the end of last year. In addition, it has recorded ever-widening net losses for the last three fiscal years. Last year's earnings deficit was around $13.2m. The value of the company's common stock has been sinking below the $1.0 minimum closing bid price since March this year. Cardima says it intends to submit a written response to Nasdaq by the requested date of December 2 2004. The company will put forward its plan for regaining and maintaining compliance with all the market's listing requirements.