SEATTLE, Dec. 13, 2017 /PRNewswire/ -- PhaseRx, Inc.
(NASDAQ: PZRX), a biopharmaceutical company developing mRNA
treatments for life-threatening inherited liver diseases in
children, today announced it received a decision from the Nasdaq
Hearings Panel (the "Panel") granting PhaseRx's request for
continued listing on The Nasdaq Capital Market until January 31, 2018. According to the relevant terms
of the Panel's decision:
On or before January 31, 2018, Company shall inform the Panel
that the Section 363 sale is complete, at which time the shares
will be delisted from the Nasdaq Stock Market. Should events occur
that call into question the ability of the Company to complete the
sale through the bankruptcy process on a timeline consistent with
its representations at the hearing, it should so inform the Panel
immediately.
PhaseRx is working diligently to satisfy the terms of the
decision and is required to inform the Panel of any significant
events that occur which could affect the company's compliance with
Nasdaq requirements.
As previously disclosed, the Nasdaq Listing Qualifications Staff
(the "Staff") had previously notified the Company that it no longer
satisfied Nasdaq's $2.5 million
stockholders' equity requirement, which was the initial reason for
the hearing before the Panel. Subsequently, on December 12, 2017, the Company received an
additional deficiency notice from the Staff citing the Company's
December 11, 2017 press release and
other publicly available information regarding the Company's filing
for protection under Chapter 11 of the U.S. Bankruptcy Code. After
reviewing the press release and such other information as is
publicly available, and in accordance with Listing Rules 5101,1
5110(b),2 and IM-5101-1, the Staff determined that this matter
serves as an additional basis for delisting the Company's
securities from Nasdaq.
At the hearing and prior to the bankruptcy filing, the Company
had discussed the possibility of a bankruptcy filing with the
Panel, and the Panel factored the bankruptcy filing and related
considerations into the terms of conditional listing set forth
above. While the Company will make every effort to satisfy the
terms of the Panel's conditional listing, no assurances can be
provided that it will be able to do so.
About PhaseRx
PhaseRx is a biopharmaceutical company dedicated to developing
mRNA products for the treatment of children with inherited enzyme
deficiencies in the liver using intracellular enzyme replacement
therapy (i-ERT). PhaseRx's initial product development focus is on
urea cycle disorders, a group of rare genetic diseases that
generally present before the age of twelve and are characterized by
the body's inability to remove ammonia from the blood with
potentially devastating consequences for patients. The company's
i-ERT approach is enabled by its proprietary Hybrid mRNA
Technology™ platform. PhaseRx is headquartered in Seattle. For more information, please visit
www.phaserx.com.
Safe Harbor Statement
This press release contains "forward-looking statements." Such
statements may be preceded by the words "intends," "may," "will,"
"plans," "expects," "anticipates," "projects," "predicts,"
"estimates," "aims," "believes," "hopes," "potential" or similar
words. Forward-looking statements are not guarantees of future
performance, are based on certain assumptions and are subject to
various known and unknown risks and uncertainties, many of which
are beyond the company's control, and cannot be predicted or
quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include, without limitation, risks and
uncertainties associated with (i) the fact that the company may not
be successful in consummating any of the strategic alternatives it
is exploring; (ii) orders and decisions of the Bankruptcy Court;
(iii) any default on the company's credit facility, which could
impact its ability to continue as a going concern; (iv) the fact
that the company has incurred significant losses since its
inception and anticipates that it will continue to incur
significant losses for the foreseeable future, (v) the fact that
Nasdaq may delist our common stock from the Nasdaq stock market
(despite the Nasdaq Hearings Panel's decision to grant continued
listing until January 31, 2018), (vi)
the Company's recent decision to delay the development of its
product candidates, reduce its workforce and seek strategic
alternatives, (vii) the company being dependent on technologies it
has licensed and that it may need to license in the future, (viii)
the fact that substantial additional funding will be required to
develop the company's planned products, (ix) the fact that the
company's Hybrid mRNA Technology has not previously been tested
beyond company preclinical studies, and that mRNA-based drug
development is unproven, (x) the fact that all of the company's
programs are in preclinical studies or early-stage research and it
is uncertain that any company product candidates will receive
regulatory approval or be commercialized, and (xi) the company's
ability to adequately protect its proprietary technology from legal
challenges, infringement or alternative technologies and (xii) the
biotechnology and pharmaceutical industries being intensely
competitive. More detailed information about the company and the
risk factors that may affect the realization of forward-looking
statements is set forth in the company's filings with the
Securities and Exchange Commission (SEC), including the most recent
annual report on Form 10-K and its' quarterly reports on Form 10-Q.
Investors and security holders are urged to read these documents
free of charge on the SEC's website at http://www.sec.gov. The
company assumes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future
events or otherwise.
Contacts:
Corporate Communications Contact:
Jason Spark
Canale Communications
Senior Vice President
jason@canalecomm.com
619.849.6005
Investor Contact:
Robert H. Uhl
Westwicke Partners, LLC
Managing Director
robert.uhl@westwicke.com
858.356.5932
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SOURCE PhaseRx, Inc.