Pharmos Corporation Announces Receipt of Nasdaq Delisting Determination Company Also Receives Going Concern Audit Opinion
Iselin NJ, March 6, 2009 – Pharmos Corporation (Nasdaq: PARS) announced today that it has received a Nasdaq Staff Determination that the company is not in compliance with the minimum $2,500,000 stockholders’ equity requirement for continued listing. Unless the company appeals the determination, its securities will be removed from listing and registration on The Nasdaq Stock Market. Pharmos does not intend to appeal the determination. The company anticipates that its shares will be listed for quotation on the Over-the Counter Bulletin Board (OTCBB) or another market and has begun the OTCBB listing process. The company will notify investors of its new stock symbol as soon as it becomes available.
On November 11, 2008, Nasdaq notified Pharmos that it did not comply with the minimum $2,500,000 stockholders’ equity requirement for continued listing set forth in Nasdaq Marketplace Rule 4310(c)(3). Based on Nasdaq’s review of materials submitted by Pharmos on November 24, 2008, Nasdaq granted the company’s request for an exception until February 24, 2009 to comply with the requirement. Upon further review, Nasdaq determined that Pharmos did not meet the terms of the exception in that its stockholders’ equity balance was not compliant by February 24, 2009. As a result, trading of Pharmos common stock will be suspended at the opening of business on March 13, 2009, and a Form 25-NSE will be filed with the Securities and Exchange Commission (the “SEC”), which will remove the company’s securities from listing and registration on The Nasdaq Stock Market.
In addition, as reflected in its Annual Report on Form 10-K, which was filed with the SEC on February 27, 2009, Pharmos received an audit opinion from PricewaterhouseCoopers LLP, its independent registered public accounting firm, that expresses doubt about the ability of the company to continue as a going concern for a reasonable period of time.
As previously disclosed, the company is seeking to raise the additional capital necessary to complete the Dextofisopam Phase 2b trial. Assuming a financing is successful, the top line clinical data are expected to be available before the end of 2009.
About Pharmos Corporation
Pharmos discovers and develops novel therapeutics to treat a range of indications including specific diseases of the nervous system such as disorders of the brain-gut axis (IBS), pain/inflammation, and autoimmune disorders. The Company’s lead product in development, dextofisopam, is undergoing Phase 2b testing in IBS patients. Dextofisopam has completed a Phase 2a IBS study in which it demonstrated a statistically significant effect compared to placebo on the primary efficacy endpoint of adequate relief (n=141, p=0.033). The Company also has a proprietary technology platform focusing on discovery and development of synthetic cannabinoid compounds with a focus on CB2 receptor selective agonists. Various CB2-selective compounds from Pharmos’ pipeline have completed preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease and other disorders. These are available for licensing / partnering. On February 18, 2009, Pharmos Corporation and its Israeli subsidiary, Pharmos Ltd., entered into an Asset Purchase Agreement with Reperio Pharmaceuticals Ltd. for the sale of the patent rights and technical know-how related to the compound known as PRS-639,058 and certain follow-on molecules.
Safe Harbor Statement
Statements made in this press release related to the business outlook and future financial performance of Pharmos, to the prospective market penetration of its drug products, to the development and commercialization of its pipeline products and to its expectations in connection with any future event, condition, performance or other matter, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Additional economic, competitive, governmental, technological, marketing and other factors identified in Pharmos’ filings with the Securities and Exchange Commission could affect such results.