LEXINGTON, Mass. - (Business Wire)
Critical Therapeutics, Inc. (NASDAQ: CRTX) announced today that it received approval from the NASDAQ Stock Market
’s Listing Qualifications Staff to transfer the listing of its common stock from The NASDAQ Global Market to The NASDAQ Capital Market. The transfer is effective at the opening of business on June 17, 2008. Critical Therapeutics
’ NASDAQ trading symbol will remain
“CRTX.
” The NASDAQ Capital Market is one of the three market tier designations for stocks listed on the NASDAQ Stock Market and presently includes approximately 500 companies. The NASDAQ Capital Market operates in substantially the same manner as The NASDAQ Global Market. A condition to approval of the transfer of the listing was the Company’s satisfaction of The NASDAQ Capital Market’s continued listing requirements, other than a $1.00 per share minimum bid price requirement. Securities listed on The NASDAQ Capital Market must satisfy all applicable qualification requirements for NASDAQ securities and all companies listed on the NASDAQ Capital Market must meet certain financial requirements and adhere to NASDAQ’s corporate governance standards. The NASDAQ Capital Market is not related to, nor does it operate similarly to over-the-counter markets, including the OTCBB and Pink Sheets.
The listing transfer is part of the Company’s action taken in response to notification received from the NASDAQ Listing Qualification Staff on May 16, 2008 regarding Critical Therapeutics’ non-compliance with the minimum stockholders’ equity requirement of $10,000,000 for continued listing on The NASDAQ Global Market pursuant to NASDAQ Marketplace Rule 4450(a)(3). As of March 31, 2008, the Company’s stockholder equity was $7,126,000, which satisfies the minimum stockholders’ equity requirements for listing on The NASDAQ Capital Market.
In addition, on April 21, 2008, Critical Therapeutics received notification from the NASDAQ Listing Qualification Staff that for the prior 30 consecutive business days the bid price of its common stock had closed at less than $1.00 per share, and, as a result, it did not comply with NASDAQ Marketplace Rule 4450(a)(5). Therefore, in accordance with Marketplace Rule 4450(e)(2), the Company was provided 180 calendar days, or until October 20, 2008, to regain compliance with NASDAQ’s minimum bid price requirement. Upon transfer to The NASDAQ Capital Market, the Company will be afforded the remainder of this compliance period. If compliance with the $1.00 minimum bid price requirement cannot be demonstrated by October 20, 2008, the NASDAQ Listing Qualification Staff will determine whether the Company meets The NASDAQ Capital Market’s initial listing criteria, other than the minimum bid price requirement. If Critical Therapeutics meets The NASDAQ Capital Market’s initial listing criteria, the Staff will notify the Company that it has been afforded an additional 180 calendar day compliance period, up to April 20, 2009, to regain compliance with the minimum bid price requirement. Otherwise, the Staff will provide written notification that the Company’s common stock will be delisted. At that time, the Company may appeal the Staff’s determination to delist its common stock to a Listing Qualifications Panel.
About Critical Therapeutics, Inc.
Critical Therapeutics, Inc. is developing and commercializing innovative products for respiratory and inflammatory diseases. Critical Therapeutics owns worldwide rights to two FDA-approved drugs: ZYFLO CR® (zileuton) extended-release tablets and ZYFLO® (zileuton tablets). Critical Therapeutics is developing products for acute asthma attacks that lead patients to the emergency room and other urgent care settings. Critical Therapeutics also is developing therapies directed toward the body’s inflammatory response. Critical Therapeutics is located in Lexington, Mass. For more information, please visit www.crtx.com.
Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for Critical Therapeutics, Inc., including, without limitation, statements regarding the continued listing of the Company’s common stock on NASDAQ; our strategy, future operations, financial position, future revenues, and projected costs; prospects, plans and objectives of management; and all other statements that are not purely historical in nature, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “target,” “may,” “plan,” “project,” “could,” “should,” “will,” “would” and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks and uncertainties relating to: the ability to achieve and sustain compliance with all NASDAQ listing requirements; our ability to successfully market and sell ZYFLO CR, including the success of our co-promotion arrangement with DEY; our ability to transition our management team effectively; our ability to develop and maintain the necessary sales, marketing, distribution and manufacturing capabilities to commercialize ZYFLO CR; patient, physician and third-party payor acceptance of ZYFLO CR as a safe and effective therapeutic product; adverse side effects experienced by patients taking ZYFLO CR or ZYFLO; our heavy dependence on the commercial success of ZYFLO CR; our ability to maintain regulatory approvals to market and sell ZYFLO CR; the success of our co-promotion arrangement with DEY for PerforomistTM (formoterol fumarate) Inhalation Solution; our ability to successfully enter into additional strategic co-promotion, collaboration or licensing transactions on favorable terms, if at all; conducting clinical trials, including difficulties or delays in the completion of patient enrollment, data collection or data analysis; the results of preclinical studies and clinical trials with respect to our products under development and whether such results will be indicative of results obtained in later clinical trials; our ability to obtain the substantial additional funding required to conduct our development and commercialization activities; our dependence on our strategic collaboration with MedImmune, Inc.; and our ability to obtain, maintain and enforce patent and other intellectual property protection for ZYFLO CR, our discoveries and our drug candidates. These and other risks are described in greater detail in the “Risk Factors” section of our Quarterly Report on Form 10-Q and other filings that we make with the Securities and Exchange Commission. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
In addition, the statements in this press release reflect our expectations and beliefs only as of the date of this release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. However, while we may elect to update these forward-looking statements publicly at some point in the future, we specifically disclaim any obligation to do so, except as required by law, whether as a result of new information, future events or otherwise. In general, except as specifically indicated, our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, business development transactions, joint ventures or investments. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this release.
ZYFLO® and ZYFLO CR® are registered trademarks of Critical Therapeutics, Inc. Perforomist™ is a trademark of Dey, L.P.
Critical Therapeutics, Inc.
Linda S. Lennox, 781-402-5708
Vice President, Investor & Media Relations
llennox@crtx.com
