SOMERSET, N.J., July 18 Alfacell Corporation(Nasdaq: ACEL) today announced that it received a non-compliance notice fromThe NASDAQ Stock Market ("NASDAQ") on July 14, 2008 stating that for the last30 consecutive business days the bid price of the company's common stock hasclosed below $1.00 per share, which is the minimum bid price required forcontinued inclusion on the NASDAQ Capital Market by Marketplace Rule4310(c)(4).
The July 14, 2008 letter indicates that, in accordance with MarketplaceRule 4310(c)(8)(D), the company will be provided with a grace period of 180calendar days, or until January 12, 2009, to regain compliance with the $1.00per share minimum bid price requirement. NASDAQ staff may determine that thecompany has regained compliance with Marketplace Rule 4310(c)(4) if at anytime before January 12, 2009, the bid price of the company's common stockcloses at $1.00 per share or above for a minimum of 10 consecutive businessdays.
In the event Alfacell does not regain compliance with the minimum bidprice rule by January 12, 2009, NASDAQ will determine if the company meets TheNASDAQ Capital Market initial listing criteria as set forth in MarketplaceRule 4310(c), except for the minimum bid price requirement. At that time, ifthe company meets the initial listing criteria, NASDAQ will notify the companythat it has been granted an additional 180 calendar day compliance period. Ifthe company is not eligible for an additional compliance period, NASDAQ willprovide written notification that the company's securities will be delisted.Alfacell may appeal the delisting determination by NASDAQ's staff to a ListingQualification Panel.
As disclosed in the company's press release on June 26, 2008, the companyalso received a non-compliance notice from NASDAQ on June 25, 2008 statingthat the company has failed to comply with the $35 million minimum marketvalue requirement under Marketplace Rule 4310(c)(3)(B), the $2.5 millionminimum stockholders' equity requirement under Marketplace Rule 4310(c)(3)(A)and the requirement for a minimum net income from continuing operations of$500,000 in the most recently completed fiscal year or in two of the lastthree most recently completed fiscal years set forth in Marketplace Rule4310(c)(3)(C). For continued listing on The NASDAQ Capital Market, thecompany must comply with, among other requirements, at least one of the abovethree alternative listing standards and the minimum bid price requirement.The 180-day grace period mentioned above relates exclusively to the bid pricedeficiency. The company may be delisted during the 180-day period for failureto maintain compliance with any other listing requirement.
The company is currently considering actions that may allow it to regaincompliance with the NASDAQ continued listing standards and maintain its NASDAQlisting.
About Alfacell Corporation
Alfacell Corporation is the first company to advance a biopharmaceuticalproduct candidate that works in a manner similar to RNA interference (RNAi)through late-stage clinical trials. The product candidate, ONCONASE, is anRNase that overcomes the challenges of targeting RNA for therapeutic purposeswhile enabling the development of a new class of targeted therapies for cancerand other life-threatening diseases. Alfacell has completed Phase IIIclinical trials of ONCONASE in unresectable malignant mesothelioma and, inaddition to ongoing efforts to complete the related rolling New DrugApplication, Alfacell is currently planning for Phase II clinical trials inother oncology indications. For more information, visit www.alfacell.com.
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