SAN FRANCISCO, June 5, 2015 (GLOBE NEWSWIRE) -- CollabRx, Inc. (Nasdaq:CLRX) (herein "CLRX" or "the Company"), announced today that it received a letter from The NASDAQ Stock Market LLC ("Nasdaq") stating that the bid price of the Company's common stock for the last 30 consecutive business days had closed below the minimum $1.00 per share required for continued listing under Listing Rule 5550(a)(2).
The Nasdaq notification letter does not result in the immediate delisting of the Company's common stock, and the stock will continue to trade uninterrupted on The Nasdaq Capital Market under the symbol "CLRX."
CollabRx has been provided a grace period of 180-calendar days, or until November 30, 2015, to regain compliance with the minimum bid price requirement. If at any time during the 180-day grace period, the minimum closing bid price per share of the Company's common stock closes at or above $1.00 for a minimum of ten consecutive business days (the Nasdaq Staff has the discretion to monitor the stock price for up to 20 trading days), CLRX will regain compliance and the matter will be closed. In the event the Company does not regain compliance within this grace period, it may be eligible to receive an additional 180-day grace period, provided that CLRX meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and provides written notice of its intention to cure the minimum bid price deficiency during the second 180-day grace period by effecting a reverse stock split, if necessary. In the event the Company is not able to regain compliance by the end of the applicable grace period, the Company's securities would be subject to delisting unless the Company requested a hearing before the Nasdaq Listing Qualifications Panel.
CollabRx management intends to monitor the stock price and is considering available actions that could be taken to regain compliance if the stock price remains below the $1.00 per share requirement at the end of the applicable grace period.
On April 16, 2015 CollabRx and Medytox Solutions, Inc. (OTCQB:MMMS) ("Medytox") announced that they had entered into a definitive merger agreement. Since the signing, both parties have been working to complete a joint proxy statement/prospectus on Form S-4, which is expected to be filed with the SEC later this month. Closing of the merger is subject to, among other things, gaining stockholder approvals from both companies, receipt of regulatory approvals and other customary closing conditions. The combined entity will be required to meet the Nasdaq initial listing requirements. By so doing, the combined entity would also address the current bid price deficiency.
About CollabRx
CollabRx, Inc. (CLRX) is a recognized leader in cloud-based expert systems to inform healthcare decision-making. CollabRx uses information technology to aggregate and contextualize the world's knowledge on genomics-based medicine with specific insights from the nation's top cancer experts, starting with the area of greatest need: advanced cancers in patients who have effectively exhausted the standard of care. More information may be obtained at http://www.collabrx.com.
CollabRx Safe Harbor Statement
This press release includes forward-looking statements about CollabRx's anticipated results that involve risks and uncertainties. Some of the information contained in this press release, including, but not limited to, statements as to industry trends and CollabRx's plans, objectives, expectations and strategy for its business, contains forward-looking statements that are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. Important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in filings made by CollabRx with the Securities and Exchange Commission. CollabRx undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.