After being informed by the Nasdaq that it doesn’t meet requirements for continued listing, Stony Brook-based Applied DNA is taking steps designed to maintain its listing on the exchange.
CEO James Hayward said the company, which uses DNA to mark and help authenticate products and materials, has been growing revenues, boosted by sales to the cannabis industry.
But he added that the company received the delisting notice from the NASDAQ after the close of its third quarter. The company, he added, is taking steps designed to sustain its listing.
Applied DNA’s third quarter revenues more than doubled to $2.1 million from $778,000 in the second quarter, boosted by sales related to cannabis, textiles and biotherapeutics.
The company said the rise in sales was due primarily to an “increase in revenue from a licensing agreement in the cannabis industry of $1 million.”
The company narrowed its quarterly lnet oss to $1.5 million from $2.9 million a year ago, as it cut operating expenses.
Hayward said the exchange after the quarter’s end informed the company that it didn’t comply with the requirements for a $1 share price and $35 million market value of listed securities.
The company's stock price has ranged from 25 cents to $1.84 over the past year.
“We are diligently working to comply with all applicable requirements for continued listing on Nasdaq and we intend to submit a plan to that effect to the NASDAQ Hearings Panel as part of the hearing process,” Hayward said.
He added that the company has obtained a non-binding agreement from TheraCann that would transform the $4 million balance under the company’s licensing agreement to $4 million in convertible preferred stock and could obtain an additional $1 million convertible note.
“We also raised $1.5 million through a convertible note offering,” Hayward said, noting a hearing has been scheduled with the Nasdaq on Sept. 19.
“That allows us additional time to execute on the balance of our plan,” Hayward continued. “However, we cannot provide assurance that we will be successful in our NASDAQ appeal.”