FRANKLIN, Mass., Dec. 27 /PRNewswire-FirstCall/ -- Sontra Medical
Corporation (Nasdaq: SONT) today announced that it will cease operations
because it has been unable to raise additional capital. Sontra previously
announced that it had sufficient cash to continue operations until December
31, 2006. The Company had been working on seeking additional capital and
the possible completion of a merger transaction; however, the Company has
not been successful in completing a financing or transaction. The Company
intends to terminate all employees, and through an orderly wind-down of its
operations, pay its current liabilities and make appropriate accommodations
for creditors. The Company's Chief Executive Officer, Thomas Davison, will
continue as Acting Chief Executive Officer on a part-time consulting basis,
and the Company's Chief Financial Officer, Harry G. Mitchell, will continue
as Acting Chief Financial Officer on a part-time consulting basis. Messrs.
Davison and Mitchell intend to continue to pursue financing for the
Company, while exploring the sale of the Company's remaining assets,
including its intellectual property portfolio.
In connection with Sontra's decision to cease operations, Sontra has
elected to voluntarily delist from the Nasdaq Capital Market. The Company
has provided a voluntary delisting notice to the Nasdaq Stock Market. On
November 22, 2006, the Company received a notice from the Nasdaq Stock
Market indicating that the Company was not in compliance with Nasdaq's
requirements for continued listing under Marketplace Rule 4310(c)(2)(B)
because the Company did not have either: (i) a minimum of $2,500,000 in
stockholders' equity as of September 30, 2006, (ii) at least $35,000,000
market value of listed securities, or (iii) at least $500,000 of net income
from continuing operations for the most recently completed fiscal year or
two of the three most recently completed fiscal years. On December 7, 2006,
the Company submitted a plan to Nasdaq explaining how it intended to
achieve and sustain compliance with all the Nasdaq Capital Market listing
requirements. As of this time, the Company has been unable to complete its
plan, which included completing a financing or merger transaction, and has
therefore not regained compliance with Marketplace Rule 4310(c)(2)(B).
In addition, on October 17, 2006, the Company received a deficiency
letter from the Nasdaq Stock Market indicating that the Company was not in
compliance with Marketplace Rule 4310(c)(4) because for the previous 30
consecutive business days, the bid price had closed below the $1.00 minimum
per share requirement for continued listing set forth in Marketplace Rule
4310(c)(4). The Company has not regained compliance with Marketplace Rule
4310(c)(4).
Sontra has not arranged for the listing of its common stock on another
national securities exchange or for the quotation of its common stock in a
quotation medium.
The Company's quotation for its common stock is expected to appear in
the "Pink Sheets" under the symbol "SONT." The Company's common stock may
also be quoted in the future on the OTC Bulletin Board provided a market
maker files the necessary application with the NASD and such application is
cleared.
About Sontra Medical Corporation (http://www.sontra.com)
Sontra Medical Corporation, a technology leader in transdermal science,
has been developing a non-invasive, continuous transdermal glucose monitor
("CTGM") for principal use in the Intensive Care Market. In addition, the
Company owns technology for transdermal delivery of large molecule drugs
and vaccines.
Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. Any
forward- looking statements contained herein are based on current
expectations, but are subject to a number of risks and uncertainties. The
factors that could cause actual future results to differ materially from
current expectations include, but are not limited to, a determination by
the Company to file for bankruptcy; the Company's inability to cease
operations in an orderly fashion; the Company's inability to pay its
creditors or liabilities; the Company's inability to sell its remaining
assets, including its intellectual property portfolio. Please refer to
other factors identified in our filings with the SEC, including, without
limitation, our respective annual reports on Form 10- KSB for the year
ended December 31, 2005, our most recent quarterly reports on Form 10-QSB,
and our current reports on Form 8-K. We do not undertake to update these
forward-looking statements made by us.
SonoPrep is a registered trademark of Sontra Medical Corporation. All
other company, product or service names mentioned herein are the trademarks
or registered trademarks of their respective owners.
Investor Relations Contacts:
Thomas W. Davison, PhD.
Acting Chief Executive Officer
508-530-0329
tdavison@sontra.com
SOURCE Sontra Medical Corporation
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Related links:
http://www.sontra.com
CONTACT:
Investor Relations, Thomas W. Davison, PhD.,
Acting Chief Executive Officer of Sontra Medical Corporation,
+1-508-530-0329, or tdavison@sontra.com
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