Essential Therapeutics Directors Aldrich, Walker Resign
Monday February 10, 11:07 am ET
WALTHAM, Mass. (Dow Jones)--Essential Therapeutics Inc. directors Richard Aldrich and John Walker resigned, following shareholders' defeat of their plan to meet Nasdaq listing criteria.
In a press release Monday, the biopharmaceutical company said the two served on a special committee to develop a long-term plan to comply with the Nasdaq listing criteria. The plan was not adopted by shareholders at a special meeting Jan. 23.
The defeated plan called for the conversion of series B preferred stock to common stock. Under the terms of the series B preferred stock, it may be redeemed for $1,000 a share in the event of a delisting.
As a result, Essential Therapeutics' liability from its 60,000 shares of series B preferred stock would be $60 million.
The company said it would be unable to make payment if the shares were redeemed, and it would have to dissolve or seek bankruptcy protection.
Essential Therapeutics was set to be delisted Monday, but was granted a stay under Nasdaq regulations until a judgment is issued at its appeal hearing.
Shares of Essential Therapeutics recently traded at 15 cents, up 3 cents, or 25%, on Nasdaq volume of 175,970 shares. Average daily volume is 197,388 shares.
-Andrew Wallmeyer; Dow Jones Newswires; 201-938-5388 |
