RESEARCH TRIANGLE PARK, N.C., Jan. 29 /PRNewswire-FirstCall/ --
Paradigm Genetics, Inc. (Nasdaq: PDGM) today announced that it received
the anticipated notice from Nasdaq on January 24, 2003 indicating that the
company's common stock is subject to delisting from the Nasdaq National Stock
market due to failure to comply with the $1.00 minimum bid price requirement
for continued listing set forth in Marketplace Rule 4450(a)(5). Paradigm is
in compliance with all other Nasdaq National Market criteria under Maintenance
Standard 1 and intends to file a request for a hearing before the Nasdaq
Qualifications Panel to appeal the staff determination. The company's stock
will continue to be traded on the Nasdaq National Market pending the final
decision by Nasdaq.
"We view the $1.00 minimum bid price as a short-term challenge," said
Heinrich Gugger, Ph.D., president and CEO of Paradigm Genetics. "We have been
gaining excellent momentum on the execution of our strategic plan. The award
of the five-year, $23.8 million toxicogenomics contract from the National
Institute of Environmental Health Sciences received in October 2002 is
validation of our company and technology."
Dr. Gugger continued, "In recent months, we have implemented a number of
actions to enhance our overall business, reduce operating losses and
strengthen our cash position, including the shifting of expenses from SG&A to
R&D, potential divestiture of ParaGen, rescope of the Monsanto collaboration
and the strengthening of the senior management team. We view these strategic
actions as long-term value drivers for the company in our commitment to
increase shareholder value."
In addition to the appeal, Paradigm is exploring various alternatives to
avoid delisting of its common stock, including a transfer to the Nasdaq
SmallCap Market. A move to the Nasdaq SmallCap Market would extend the grace
period for the $1.00 minimum bid price requirement to at least April 23, 2003,
with the potential for an additional grace period. There is no assurance that
the Nasdaq Qualifications Panel will decide to allow Paradigm to remain listed
or that Paradigm's actions will prevent the delisting of its common stock from
the Nasdaq National Market. Paradigm will not be notified until the Nasdaq
Qualifications Panel makes a formal decision on the appeal.
About Paradigm Genetics
Paradigm is a biotechnology company aiming to increase R&D productivity by
focusing its integrated suite of technologies on the product development
cycle, from target discovery to subsequent enhancement of the safety and
efficacy profiles of development candidates in agriculture and human health.
Paradigm chooses a system biology approach to understand gene function in the
context of biological pathways, to develop assays and biomarkers for molecular
diagnostic solutions tailored to the needs of our partners. For more
information, visit http://www.paradigmgenetics.com.
This press release contains forward-looking statements, including
statements regarding the effect of executing Paradigm's strategic plan on
increasing shareholder value going forward. Such forward-looking statements
are based on management's current expectations and are subject to a number of
risks, factors and uncertainties that may cause actual results, events and
performance to differ materially from those referred to in the forward-looking
statements. These risks, factors and uncertainties include, but are not
limited to, Paradigm's early stage of development, history of net losses,
technological and product development uncertainties, reliance on research
collaborations, uncertainty of additional funding and ability to protect its
patents and proprietary rights. Certain of these and other risks are
identified in Paradigm's Form 10-Q for the quarter ended September 30, 2002,
filed with the Securities and Exchange Commission. The Company does not
intend to update any of the forward-looking statements after the date of this
release to conform these statements to actual results or to changes in our
expectations, except as may be required by law.
SOURCE Paradigm Genetics, Inc.
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Related links:
http://www.paradigmgenetics.com
CONTACT:
Melissa Matson, Manager, Corporate
Communications of Paradigm Genetics, Inc., +1-919-425-3000, or
Amy Garay of Noonan Russo Presence Euro RSCG, +1-212-845-4200,
for Paradigm Genetics, Inc.
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