Targeted Genetics is to delist from NASDAQ and deregister its common stock. The company believes that the expense and management attention required for compliance with NASDAQ Capital Market and the Securities and Exchange Commission outweigh their benefits.
Instead, it plans to use its limited resources to support continued efforts to turn certain assets into cash and to back product-development programs currently under way with commercial and academic partners. The firm also hopes to realize value through milestone fees and royalties from licensing relationships.
In September 2009, Targeted Genetics sold a number of assets to Genzyme, including manufacturing technologies and other adeno-associated viral vector technologies for $7 million in cash. The company estimates that it closed last year with cash and cash equivalents of approximately $4.5 million. The firm currently has six full-time equivalent employees but plans to shift its CEO and CFO to part-time status.
“During 2009, we generated significant cash resources and eliminated significant liabilities through a number of transactions while at the same time significantly reducing our expenses,” notes B.G. Susan Robinson, president and CEO. “We will continue these aggressive efforts to conserve resources and embrace opportunity with the goal of capturing the most value for our shareholders”.
Targeted Genetics has informed NASDAQ of its decision not to pursue a reverse stock split as a means to regain compliance with the NASDAQ’s $1.00 per share minimum bid-price requirement. Delisting of the company’s common stock is expected to become effective in 10 days by around February 1. Following the delisting Targeted Genetics anticipates that its common stock will be quoted on the Pink Sheets. The company also intends to file a Form 15 with the SEC to voluntarily deregister its common stock.