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HUNTINGDON VALLEY, Pa., Nov. 23 /PRNewswire-FirstCall/ -- Cellegy
Pharmaceuticals, Inc. (Nasdaq: CLGY) today announced that the Company received
a letter from The Nasdaq Stock Market notifying Cellegy that for ten
consecutive trading days the market value of the common stock had been below
the minimum price that would result in a market value of the common stock of
at least $35,000,000 as required for continued inclusion on the Nasdaq
SmallCap Market by Marketplace Rule 4310(c)(2)(B)(ii) (the "Rule"). Cellegy
has until December 19, 2005 to regain compliance. If, at any time before
December 19, 2005, the aggregate market value of Cellegys common stock is
$35,000,000 or more for a minimum of ten consecutive business days, the Nasdaq
staff will determine if Cellegy complies with the Rule. Based upon 29,831,625
shares outstanding on November 14, 2005, Cellegys stock price would have to
equal or exceed approximately $1.18 for a minimum of ten consecutive business
days in order to regain compliance.
If Cellegy does not regain compliance with The Nasdaq SmallCap Market
continued listing requirements by December 19, 2005, the Nasdaq staff will
provide written notification that the Companys securities will be delisted.
Cellegy may appeal to a Listing Qualification Panel. If the Companys common
stock is delisted from the Nasdaq SmallCap Market, Cellegy would likely seek
to have the common stock trade over the OTC Bulletin Board. Delisting from
The Nasdaq SmallCap Market will likely reduce the liquidity of Cellegys
common stock, could cause certain investors not to trade in Cellegys common
stock and result in a lower stock price, and could have an adverse effect on
the Company.
In the letter, Nasdaq also notified Cellegy that it did not currently
satisfy alternate standards for continued listing under Marketplace Rules
4310 (c)(2)(B)(i), which requires minimum stockholders equity of $2,500,000,
or 4310(c)(2)(B)(iii), which requires net income from continuing operations of
$500,000 in the most recently completed fiscal year or in two of the last
three most recently completed fiscal years.
About Cellegy
Cellegy Pharmaceuticals is a specialty biopharmaceutical company that
develops and commercializes prescription drugs for the treatment of womens
health care conditions, including sexual dysfunction, HIV prevention and
gastrointestinal disorders. In October 2004, Cellegy acquired Biosyn, Inc., a
privately held biopharmaceutical company in Huntingdon Valley, Pennsylvania.
The addition of Biosyn, a leader in the development of novel microbicide gel
products for contraception and the reduction in transmission of HIV in women,
expands Cellegys near term product pipeline and complements Cellegys womens
health care focus. Cellegy believes that Savvy(R) (C31G vaginal gel),
currently undergoing Phase 3 clinical studies in the United States and Africa,
is one of the most clinically advanced products in development for the
reduction in transmission of HIV.
Fortigel(TM) (testosterone gel), branded Tostrex(R) outside the United
States, is marketed in Sweden for the treatment of male hypogonadism also by
ProStrakan. Approvals of Rectogesic and Tostrex by the other member states
of the European Union are being sought through the Mutual Recognition
Procedure. Cellegesic, for the treatment of anal fissures, was the subject of
an FDA Not Approvable letter in December 2004, was resubmitted to the FDA in
April 2005 and is currently under review at the FDA.
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