FRANKLIN, Mass., Nov. 29 /PRNewswire-FirstCall/ -- Sontra Medical Corporation today announced it received a notice on November 22, 2006 from the Nasdaq Stock Market indicating that the Company is not in compliance with Nasdaq’s requirements for continued listing because the Company did not have either: (i) a minimum of $2,500,000 in stockholders’ equity as of September 30, 2006, (ii) at least $35,000,000 market value of listed securities, or (iii) at least $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. Nasdaq requires compliance with one of the foregoing criteria for continued inclusion under Nasdaq Marketplace Rule 4310(c)(2)(B). Such letters are standard procedure when a listed company does not meet the requirements listed above. The notification has no effect on the listing of Sontra’s common stock at this time. Nasdaq stated in its notice that it is reviewing Sontra’s eligibility for continued listing on the Nasdaq Capital Market. In order to facilitate Nasdaq’s review, on or before December 7, 2006, the Company must submit a specific plan on how it intends to achieve and sustain compliance with all the Nasdaq Capital Market listing requirements, including the time frame for completion of the plan. Sontra expects to submit the plan on or before such date. As reported in Sontra’s Form 10-Q for the quarter ended September 30, 2006, the Company had stockholders’ equity of $1,649,396 at September 30, 2006.
If, upon conclusion of the review process, Nasdaq determines that the Company’s plan does not adequately address the issue of compliance with Nasdaq’s listing requirements, the Company would receive written notification from Nasdaq that its securities will be delisted, and the Company will have the option of requesting a hearing and appealing the decision to a Nasdaq Listing Qualifications Panel.
As previously announced, on October 17, 2006 the Company received a deficiency notice from Nasdaq based on the Company’s failure to satisfy Nasdaq’s $1.00 per share minimum bid price requirement. By Nasdaq rule, Sontra has until April 16, 2007 to regain compliance with the minimum bid price rule.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation is a technology leader in transdermal science and is developing a non-invasive, continuous transdermal glucose monitor (“CTGM”) for principal use in the Intensive Care Market. Through its platform technology, the SonoPrep(R) Permeation System, combined with technical competencies in transdermal drug formulation, analysis, delivery systems and biosensors, the Company is creating a new paradigm in transdermal drug delivery and diagnosis. The CTGM and other company products are being developed for several billion dollar market opportunities, all utilizing skin permeation, chemistry and biosensor technology developed by the Company. In addition, the Company owns technology for transdermal delivery of large molecule drugs and vaccines.
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward- looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, a determination by the Company to wind down its business or file for bankruptcy; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies; risks and uncertainties relating to the Company’s ability to develop, market and sell products based on its technology, including a continuous transdermal glucose monitor for the hospital ICU market; the expected size of the market for the continuous transdermal glucose monitor for the hospital ICU market; the expected benefits and efficacy of the SonoPrep device in connection with diagnostics, vaccine delivery, glucose monitoring and transdermal science. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our respective annual reports on Form 10-KSB for the year ended December 31, 2005, our most recent quarterly reports on Form 10-QSB, and our current reports on Form 8-K. We do not undertake to update these forward-looking statements made by us.
SonoPrep is a registered trademark of Sontra Medical Corporation. All other company, product or service names mentioned herein are the trademarks or registered trademarks of their respective owners.
Harry G. Mitchell, CFO
508-530-0311
hmitchell@sontra.com
Sontra Medical Corporation
CONTACT: Harry G. Mitchell, CFO of Sontra Medical, +1-508-530-0311,hmitchell@sontra.com
Web site: http://www.sontra.com//
