SOURCE: Targeted Genetics

Targeted Genetics

August 14, 2009 16:01 ET

Targeted Genetics Corporation Receives Additional Notice Regarding Nasdaq Delisting

SEATTLE, WA--(Marketwire - August 14, 2009) - Targeted Genetics Corporation (NASDAQ: TGEN) today announced that, on August 10, 2009, it received a letter from the Nasdaq Stock Market indicating that the Company has failed to regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires companies listed on the Nasdaq Capital Market to maintain a minimum $1.00 bid price per share. The letter stated that the Company's non-compliance with the bid price requirement serves as an additional basis for delisting the Company's common stock from the Nasdaq Capital Market, in addition to the Company's non-compliance with the shareholders' equity requirement of Listing Rule 5550(b) previously announced by the Company.

As previously announced, on July 23, 2009 the Nasdaq staff notified the Company of its determination to delist the Company's securities on the grounds of the Company's non-compliance with the shareholders' equity requirement. The Company appealed the Nasdaq staff's determination and was granted a hearing before a Nasdaq hearing panel, and the delisting has been stayed until the hearing is completed and the panel has issued a written decision. The Nasdaq hearing panel will consider the Company's non-compliance with both the shareholders' equity requirement and the bid price requirement in rendering its decision regarding the Company's continued listing on the Nasdaq Capital Market. A written decision is expected within 35 days from the hearing date. There can be no assurance that, following the hearing, the panel will grant the Company's request for continued listing on the Nasdaq Capital Market, or that the Company will be able to regain or maintain compliance with the Nasdaq listing requirements.

If the Company is delisted from the Nasdaq Capital Market, its common stock may be traded over-the-counter on the OTC Bulletin Board or in the "pink sheets" if one or more market makers seeks and obtains approval by the Financial Industry Regulatory Authority (FINRA) to continue quoting in the Company's common stock. The over-the-counter market, however, is generally considered to be less efficient than the Nasdaq Capital Market. Many over-the-counter stocks trade less frequently and in smaller volumes than securities traded on the Nasdaq markets, which would likely have a material adverse effect on the liquidity and value of the Company's common stock.

About Targeted Genetics Corporation

Targeted Genetics Corporation is a biotechnology company committed to the development of innovative targeted molecular therapies for the prevention and treatment of acquired and inherited diseases with significant unmet medical need. Targeted Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows it to deliver genes that encode proteins to increase gene function or RNAi to decrease or silence gene function. To learn more about Targeted Genetics, visit Targeted Genetics' website at www.targetedgenetics.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release contains forward-looking statements, including statements regarding the Company's potential delisting from the Nasdaq Capital Market, the process for the Company's appeal of the Nasdaq staff's determination to delist the Company's securities and potential trading of the Company's securities on the over-the-counter market. These statements involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements and cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that could affect actual future events or results include, but are not limited to, the risk that the Company will not be able to sell or otherwise monetize its manufacturing or other assets or enter into one or more strategic transactions, the risk that the Company will not be able to raise capital or secure other financial resources in the very near term and will be required to cease its operations or otherwise wind up its business, the risk that the Company will run out of cash earlier than expected, the risk that the Company will not receive the cash it expects to receive from its collaborative partners, grants and other business activities, the risk that the Company will be unable to regain compliance with the Nasdaq Capital Market listing requirements for shareholders' equity and/or minimum bid price and that its appeal to the Nasdaq listing qualifications panel will be unsuccessful, resulting in the inability of the Company to maintain its listing on the Nasdaq Capital Market, the risk that an over-the-counter market will not trade the Company's shares if the Nasdaq Capital Market delists the Company, the risk that the Company will be unable to meet its obligations under its Bothell lease termination agreement, which would result in the Company not being released from its obligations under the Bothell lease, and the risk factors described in the section entitled "Risk Factors" in Part I, Item 1A of the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2009, filed with the Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. The Company undertakes no duty to publicly announce or report revisions to these statements as new information becomes available that may change the Company's expectations.

Contact Information

  • Investor and Media Contact:
    Stacie D. Byars
    206.660.2588
    Email Contact