ORCHARD PARK, N.Y., Dec. 17 MINRAD International, Inc. (Amex: BUF) today reported that the Company received a notice from NYSE Alternext US LLC (the "Exchange") stating that a review of the Company's 10-Q for the quarter ended September 30, 2008, indicated the Company was not in compliance with certain provision of the Exchange's Company Guide (the "Company Guide"), namely Section 1003(a)(i), with stockholders' equity of less than $2,000,000 and losses from continuing operations and net losses in two out of its three most recent fiscal years; 1003(a)(ii), with stockholders' equity of less than $4,000,000 and losses from continuing operations and net losses in three out of its four most recent fiscal years; 1003(a)(iii), with stockholders' equity of less than $6,000,000 and losses from continuing operations and net losses in its five most recent fiscal years; and 1003(a)(iv) in that it has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether it will be able to continue operations and/or meet its obligations as they mature.
In order for the Company to maintain its listing on the Exchange, it must submit a plan by December 26, 2008 addressing how it intends to regain compliance with Section 1003(a)(iv) of the Company Guide by March 11, 2009, and Sections 1003(a)(i), 1003(a)(ii), and 1003(a)(iii) by June 11, 2010 (the "Plan"). This Plan is to include specific milestones, quarterly financial projections, and details related to any strategic initiatives the Company plans to complete. If the Company does not submit a plan or if it is not accepted by the Exchange, the Company will be subject to delisting Procedures.
The Exchange also stated that due to the low selling price of the Company's stock, pursuant to Section 1003(f)(v) of the Company Guide, a reverse stock split is advised. The Exchange may consider suspending dealings in, or removing from the list, the Company's common stock if the reverse stock split is not completed within a reasonable amount of time.
About the Company
The Company is an interventional pain management company with three focus areas: (1) anesthesia and analgesia, (2) real-time image guidance, and (3) conscious sedation. The Company's products are sold throughout the world. The anesthesia and analgesia business currently manufactures and sells generic inhalation anesthetics that are used for human and veterinary surgical procedures. The Company manufactures patented real-time image guidance technologies that facilitate minimally invasive surgery. The SabreSource(TM) system and the accompanying Light Sabre(TM) disposable products have broad applications in orthopedics, neurosurgery, interventional radiology and anesthesia. They enable improved accuracy and reduced radiation in interventional procedures and support the transfer of these procedures to the outpatient setting. The Company is in the process of developing a drug /drug delivery system for the use of halogenated ethers as inhalation analgesics for conscious sedation.
The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Factors that may cause actual results to differ materially from those expressed or implied by its forward-looking statements include, but are not limited to, MINRAD International's limited operating history and business development associated with being a growth stage company; its dependence on key personnel; its need to attract and retain technical and managerial personnel; its ability to execute its business strategy; the intense competition it faces; its ability to protect its intellectual property and proprietary technologies; its exposure to product liability claims resulting from the use of its products; general economic and capital market conditions; financial conditions of its customers and their perception of its financial condition relative to that of its competitors; as well as those risks described under the heading "Risk Factors" of MINRAD International's Form 10-KSB/A, filed with the Securities and Exchange Commission on April 21, 2008. Although MINRAD International, Inc. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
MINRAD International, Inc. Contact 50 Cobham Drive Charles R. Trego, Jr. Orchard Park, NY 14127 Executive Vice President and CFO (716) 855-1068
SOURCE MINRAD International, Inc.