FRANKLIN, Mass., Nov. 29 /PRNewswire-FirstCall/ -- Sontra Medical Corporation announced today that it received a deficiency letter (“the Letter”) on November 23, 2005 from the Nasdaq Stock Market indicating that the Company is not in compliance with the continued listing requirements on The Nasdaq Capital Market because for the previous 30 consecutive business days, the bid price had closed below the $1.00 minimum per share requirement for continued listing as set forth in Marketplace Rule 4310(c)(4) (the “Minimum Bid Price Rule”). The issuance by Nasdaq of such letters is standard procedure when a listed company does not meet the Minimum Bid Price Rule. By Nasdaq rule, Sontra will be provided 180 calendar days, or until May 22, 2006, to regain compliance with the Minimum Bid Price Rule. This Letter has no effect on the listing of the Company’s common stock at this time.
The Letter also stated that, in accordance with Marketplace Rule 4310(c)(8)(E), if at any time before May 22, 2006, the bid price of the Company’s common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, the Company will be provided written notice that it complies under the Minimum Bid Price Rule.
If compliance with the Minimum Bid Price Rule cannot be demonstrated by May 22, 2006, the Staff will determine whether Sontra meets The Nasdaq Capital Market initial listing criteria set forth in Marketplace Rule 4310(c), except for the bid price requirement. If the Company meets the initial listing criteria, the Company will be given notice that it has been granted an additional 180 calendar-day period to comply with the Minimum Bid Price Rule. If it is determined that the Company is not eligible for this additional compliance period, the Company will be provided written notice that its securities will be delisted. At that time, the Company may appeal to a Listing Qualifications Panel the Staff’s determination to delist its securities.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal science. Sontra’s SonoPrep(R) ultrasound-mediated skin permeation technology, combined with technical competencies in transdermal drug formulation, delivery systems and biosensors, is creating a new paradigm in transdermal drug delivery and diagnosis. The SonoPrep(R) technology is being developed for several billion dollar market opportunities, including continuous glucose monitoring and the transdermal delivery of large molecule drugs and vaccines. Sontra is currently marketing the SonoPrep(R) device and procedure tray for use with topical lidocaine to achieve rapid (within five minutes) skin anesthesia.
Contact: Sean Moran, Sontra Medical CFO 508-530-0334
This press release contains forward-looking statements, which address a variety of subjects including, for example, Sontra’s expected ability to regain compliance with the Nasdaq minimum bid price requirement, the expected benefits and efficacy of the SonoPrep device in connection with diagnostics, vaccine delivery, glucose monitoring and transdermal drug delivery, the expected market size and opportunities, distribution and market acceptance of the SonoPrep device and technology, and Sontra’s business, research, product development, regulatory approval, marketing and distribution plans and strategies. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward- looking statements: if we are unable to regain compliance with the Nasdaq minimum bid price requirements our stock will be delisted from Nasdaq; our technology is new and we may experience adverse results in research collaborations, product development, clinical trials, product evaluations, commercialization efforts, product distribution and market acceptance; the SonoPrep device may not prove effective in connection with diagnostics, vaccine delivery, glucose monitoring and/or transdermal drug delivery; markets for our products may develop slower than expected, or not at all; our sales cycle is lengthy and we are still developing sales and marketing strategies which may or may not prove effective; difficulties or delays in obtaining regulatory approvals to market products resulting from development efforts; difficulties or delays associated with sources of regulatory-approved transdermal drugs and vaccines; failure to obtain and maintain patent protection for discoveries; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic partners and third- party distributors to develop, commercialize, market and sell products based on our work; and the requirement for substantial funding to conduct research and development and to expand commercialization, distribution and marketing activities. For detailed information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Sontra’s filings with the Securities and Exchange Commission, including Sontra’s most recent Quarterly Report on Form 10-QSB. Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update forward- looking statements made by us.
Sontra Medical Corporation
CONTACT: Sean Moran, Sontra Medical CFO, +1-508-530-0334
Web site: http://www.sontra.com//
