SAN MATEO, Calif., May 11, 2011 /PRNewswire/ -- Nile Therapeutics, Inc. (NASDAQ: NLTX), a biopharmaceutical company that develops novel therapeutics for heart failure patients, today announced that the Company's securities will cease trading on The Nasdaq Capital Market effective with the open of business on May 12, 2011. The Company expects its common stock to begin trading under the "NLTX" symbol on the OTCQB Marketplace following the suspension of trading on the Nasdaq Capital Market.
As previously disclosed, on November 30, 2010, the Company was notified by The NASDAQ Stock Market ("NASDAQ") that its securities were subject to delisting based upon the Company's failure to satisfy NASDAQ's minimum $1.00 bid price requirement, as set forth in Listing Rule 5550(a)(2). The Company subsequently attended a hearing before the NASDAQ Listing Qualifications Panel (the "Panel") at which it presented its plan to regain compliance with the minimum bid price requirement by May 31, 2011, one component of which consisted of effecting a reverse stock split. On March 1, 2011, the Panel granted the Company's request for an extension to remain listed on NASDAQ, subject to the Company evidencing a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days by May 31, 2011 and demonstrating compliance with all other applicable listing standards as of such date. On May 10, 2011, the Company informed NASDAQ that it had determined not to proceed with a reverse stock split prior to May 31, 2011. Accordingly, on May 10, 2011, the Company was notified by NASDAQ that trading in its securities on would be suspended on The Nasdaq Capital Market as of the open of business on May 12, 2011, with formal delisting to follow.
Operated by OTC Markets Group Inc., the OTCQB is a market tier for OTC traded companies that are registered and reporting with the Securities and Exchange Commission. The Company expects its common stock will continue to trade under the "NLTX" symbol on the computerized OTCQB system. Investors will be able to view Level II Real Time stock quotes for Nile at http://www.otcmarkets.com.
About Nile Therapeutics
Nile Therapeutics, Inc. is a biopharmaceutical company that develops innovative products for the treatment of cardiovascular disease and other areas of unmet medical needs. Nile is initially focusing its efforts on developing its lead compound, cenderitide, a novel rationally designed chimeric peptide in clinical studies for the treatment of heart failure, and CU-NP, a novel rationally designed natriuretic peptide. More information on Nile can be found at http://www.nilethera.com.
Safe Harbor Paragraph for Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Nile's transition from The Nasdaq Capital Market to the OTCQB Marketplace, including the timing of trading of and the prospects for a market developing for Nile's securities on the OTCQB, are forward-looking statements. Nile may not actually achieve these plans, intentions or expectations and Nile cautions investors not to place undue reliance on Nile's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements Nile makes. Various important factors that could cause actual results or events to differ materially from the forward-looking statements that Nile makes include Nile's need to raise additional capital to fund its product development programs to completion, Nile's reliance on third-party researchers to develop its product candidates, and its lack of experience in developing and commercializing pharmaceutical products. Additional risks are described in greater detail in the reports Nile files with the Securities and Exchange Commission, including those described under the caption "Risk Factors" in Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission on March 14, 2011. Nile is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
SOURCE Nile Therapeutics, Inc.