Encorium Group, Inc. (ENCO) Announces NASDAQ Panel Decision to Delist Common Stock; Announces Changes to its Board of Directors
10/22/2010 7:15:13 AM
WAYNE, Pa., Oct. 22 /PRNewswire-FirstCall/ -- Encorium Group, Inc. (Nasdaq: ENCO), (the "Company"), a full service multinational clinical research organization (CRO) conducting studies in over 30 countries for many of the world's leading pharmaceutical and biotechnology companies, today announced that, on October 20, 2010, it received notification that a NASDAQ Listing Qualifications Panel (the "Panel") has determined to delist the Company's securities from The NASDAQ Stock Market, effective with the open of business on October 22, 2010, as a result of the Company's non-compliance with the minimum $2.5 million stockholders' equity requirement.
The Company has been advised by Pink OTC Markets Inc., which operates an electronic quotation service for securities traded over-the-counter ("OTC"), that its securities are immediately eligible for quotation on the OTCQB. The OTCQB is a market tier for OTC traded companies that are registered and reporting with the Securities and Exchange Commission. The Company has also been advised that its shares will continue to trade under the symbol ENCO. Investors can now view real time stock quotes for ENCO at http://www.otcmarkets.com.
Board of Director Changes
In addition, on October 15, 2010, Sari Laitinen and Petri Maninnen resigned from the Board of Directors with immediate effect. With these changes the Board of Directors currently consist of three directors, namely Shahab Fatheazam, Chairman, David Morra and Kai Lindevall, and remains composed of a majority of independent directors.
About Pink OTC Markets Inc.
Pink OTC Markets Inc. is a financial information and technology services company that operates an inter-dealer electronic quotation and trading system in the Over-the-Counter, or OTC, securities market. It is not registered with the Securities and Exchange Commission as a stock exchange or a broker-dealer firm. Investors should contact a broker-dealer firm to trade in a security quoted on the OTCQB or the other OTC tiers operated by Pink OTC Markets Inc. More information is available at http://www.otcmarkets.com.
About Encorium Group, Inc.
Encorium Group, Inc. is a global clinical research organization specializing in the design and management of complex clinical trials and Patient Registries for the pharmaceutical, biotechnology and medical device industries. The Company's mission is to provide its clients with high quality, full-service support for their biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as infectious diseases, cardiovascular, vaccines, oncology, diabetes endocrinology/metabolism, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, women's health and respiratory medicine. Encorium believes that its expertise in the design of complex clinical trials, its therapeutic experience and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process.
This press release contains forward-looking statements relating to among other things, the Company's current expectations that its common stock will be quoted on the OTCQB. Forward-looking statements may be identified by words such as "estimate," "project," "expect," "intend," "believe," "anticipate" and similar expressions. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to: (i) market makers not continuing to make a market in the Company's common stock, (ii) the ability of the Company's common stock to be quoted on the OTCQB, (iii) the Company's ability to continue as a going concern, (iv) the Company's ability to service its principal and interest obligations on its outstanding debt or otherwise renegotiate or refinance such outstanding debt, which renegotiation may not be successful and refinancing may not be available on acceptable terms, if at all, which may trigger defaults under its other debt agreements, create liquidity issues, potentially force the Company to file for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code and prevent the Company from continuing as a going concern; (iv) the risk that we may not have sufficient funds to operate our business; (v) our success in attracting new business and retaining existing clients and projects; (vi) the size, duration and timing of clinical trials we are currently managing may change unexpectedly; (vii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues and cash-on-hand to decline unexpectedly; (viii) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (ix) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (x) the ability to maintain profit margins in a competitive marketplace; (xi) our ability to attract and retain qualified personnel; (xii) the sensitivity of our business to general economic conditions; (xiii) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (xiv) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties; (xv) our backlog may not be indicative of future results and may not generate the revenues expected; (xvi) uncertainties regarding the availability of additional capital; (xvi) uncertainties regarding the execution of change orders by our clients for work already performed; and (xvi) uncertainties regarding our ability to integrate the business of Progenitor, which was acquired in July, 2010. You should not place undue reliance on any forward-looking statement. We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events. Please refer to the section entitled "Risk Factors" in the Company Annual Report on Form 10-K for the year ended December 31, 2009 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.
SOURCE Encorium Group, Inc.