RESEARCH TRIANGLE PARK, N.C., April 9 /PRNewswire-FirstCall/ --
Paradigm Genetics, Inc. (Nasdaq: PDGM), a biotechnology company, today
announced that it has received notification from Nasdaq granting the company
an extension until July 3, 2003 to re-establish compliance with the Nasdaq
National Market's minimum $1.00 closing bid requirement. As previously
released, in January 2003 Paradigm received a notice from Nasdaq indicating
the company failed to comply with the $1.00 minimum bid price required for
continued listing by Marketplace Rule 4450(a)(5) and that its common stock was
subject to delisting from the Nasdaq National Market. Paradigm subsequently
made a formal appeal before a Nasdaq Listing Qualifications panel to maintain
the company's listing on the Nasdaq National Market.
"We are very pleased that Nasdaq has granted us this extension," said
Heinrich Gugger, Ph.D., President and CEO. "We strongly believe in our
business strategy and our ability to execute the plan. Nasdaq's decision
further enables us to focus on our execution. By doing so we believe we will
be able to regain and maintain compliance with the Nasdaq National Market
listing requirements."
Paradigm has made significant progress in executing the company's
strategic plan and building the long-term prospects for the company. Areas of
progress include the restructuring of its commercial arrangements with its
agriculture partners to provide the foundation for future profitability in its
agriculture business; identification of new business opportunities in both
agriculture and healthcare, including the recent launch of the microarray
services business; and establishment of key strategic relationships to
strengthen the company's collective offering and speed its entry into the
healthcare market.
Last month, the Securities and Exchange Commission (SEC) approved certain
changes to Nasdaq's bid price rules, including an extension of the initial
compliance period for National Market issuers from 90 to 180 days. Since
then, Nasdaq has proposed other modifications to the bid price rules, whereby
National Market issuers may be granted an additional 180-day compliance
period, subject to meeting certain other enhanced listing standards. There
can be no assurances that such a proposal will be approved by the SEC, or if
approved, that it will not be modified by the SEC in a manner that would
shorten the proposed extension or prevent Paradigm from qualifying for any
additional period of time to comply with the minimum bid price requirement.
Paradigm will host a conference call to review 2003 first quarter results
on May 1, 2003 at 8:30 a.m. EST. A webcast of the call can be accessed from
May 1 through May 15 at http://www.paradigmgenetics.com.
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 systems 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. Paradigm's
proprietary Gene to Cell to System(TM) approach has three major components:
gene expression profiling, biochemical profiling (also known as metabolomics)
and data integration and coherence. For more information, visit
http://www.paradigmgenetics.com.
This press release contains forward-looking statements, including
statements regarding expected generation of revenues from Paradigm's recently
launched microarray services business, future profitability in Paradigm's
agriculture business and the long-term prospects of Paradigm. 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, ability to identify new business
opportunities in agriculture and healthcare, reliance on key strategic
relationships to enter the healthcare market, ability to generate substantial
revenues from its agriculture partners, ability to regain and maintain
compliance with Nasdaq National Market listing requirements, 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-K for
the year ended December 31, 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
media, Prateek Patnaik, or investors, Amy Garay, +1-212-845-4200,
both of Noonan Russo Presence Euro RSCG for Paradigm Genetics,
Inc.
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