LINCOLNSHIRE, Ill., Oct. 12 /PRNewswire-FirstCall/ -- Aksys(R), Ltd. , a pioneer in innovative dialysis systems, today announced that the NASDAQ Listing Qualifications Panel has granted the Company's request for continued listing on The NASDAQ Capital Market, subject to certain conditions. The listing exception was granted based upon the Company's plan to achieve compliance with NASDAQ's $35 million market value of listed securities requirement, as set forth in NASDAQ Marketplace Rule 4310(c)(2)(B). As part of the plan of compliance, the Company's largest stockholder, Durus Life Sciences Master Fund Ltd., has indicated its willingness to convert shares of Series B preferred stock of the Company into shares of common stock as well as senior notes for shares of the Company's common stock to the extent necessary to establish compliance with the requirement under NASDAQ rules that the Company's market value of listed securities equal at least $35 million.
The Panel's decision to grant the Company's request for continued listing is subject to the requirement that the Company inform the Panel that the Company has completed the conversion of securities held by Durus and has issued sufficient shares of common stock such that it is able to demonstrate a market value of listed securities of $35 million or greater on or before October 31, 2006. The Panel's decision is also subject to the Company maintaining a market value of listed securities at or above $35 million for a minimum of ten consecutive trading days on or before November 15, 2006.
There can be no assurance that the Company will be able to demonstrate compliance with the conditions set forth in the Panel's decision. If the Company is unable to demonstrate such compliance, the Panel may determine to delist the Company's securities from The NASDAQ Capital Market, and the Company's common stock thereafter would likely be quoted on the OTC Bulletin Board or the "pink sheets."
Aksys, Ltd., designs, develops, and markets innovative hemodialysis products and services for patients suffering from kidney failure. The Company's next-generation system, known as the G-2 system, is being designed to leverage the safety record, ease-of-use, and clinical benefits provided by the original PHD System, while significantly improving reliability and lowering costs. Patients with ESRD who dialyze at home benefit from improved quality of life, reduced mortality, and morbidity while reducing the associated high cost of in-hospital or in-clinic patient care. Further information is available on Aksys' website: http://www.aksys.com/ .
This press release contains forward-looking statements that involve a number of risks and uncertainties. Our actual results could differ materially from the results identified or implied in any forward-looking statement. These forward-looking statements reflect our views as of the date they were made with respect to future events and financial performance but are subject to many uncertainties and factors that may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. We believe factors that could cause such a difference include, but are not limited to, the following: (i) our ability to obtain sufficient capital on acceptable terms to run our business; (ii) risks and uncertainties relating to our ability to satisfy the continued listing requirements of the Nasdaq Capital Market; (iii) risks relating to our ability to comply with regulatory clearances and approvals required to manufacture, market, and sell the current PHD system and the G-2 system, and the potential adverse impact on our company of failing to maintain or obtain any such clearances and approvals; (iv) uncertainty about the acceptance of the G-2 system by both potential users and purchasers, including without limitation, patients, clinics and other health care providers; (v) risks related to uncertain unit pricing and product cost, which may not be at levels that permit us to be profitable; (vi) risks related to quality control issues and consistency of service applicable to both systems; (vii) market, regulatory reimbursement and competitive conditions; (viii) risks related to the failure to meet additional development and manufacturing milestones for the G-2 system on a timely basis, including, without limitation, manufacturing and servicing cost reduction efforts; (ix) potential errors, design flaws or other problems with the G-2 system; (x) changes in QSR requirements; (xi) risks related to our ability to protect our intellectual property rights, operate without infringing the proprietary rights of others and develop additional patentable technology; and (xii) other factors detailed in our filings with the SEC, including our recent filings on Forms 10-K, 10-Q and 8-K. We do not undertake to publicly update or revise our forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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