BUENA BOROUGH - IGI Laboratories has received an extension until May 31 to regain compliance with its stock exchange, the cosmetics and pharmaceutical products maker announced Thursday.
If it doesn't make progress as outlined in its compliance plan, the company could be delisted from the NYSE Amex, formerly known as the American Stock Exchange, or Amex, which lists small- and mid-cap companies.
IGI was notified on May 6, 2008, that it had violated listing standards in a couple of instances, including having a stockholders' equity of less than $6 million, losses from continuing operations and net losses in its five most recent fiscal years.
IGI was ordered to draw up a compliance plan and had a year to follow through, which it had been doing, according to the company, although it needed this latest extension.
One way the company is raising capital is through a $6 million private placement of preferred stock with a New York-based health-care investor. IGI stockholders are set to vote on approval of the deal at a May 15 meeting.
"We anticipate that stockholder approval of the offering will allow us to regain compliance with NYSE Amex listing standards within the stipulated timeline," Rajiv Mathur, IGI's president and CEO, said in a statement.
IGI stock closed at $1.03 per share Thursday, up 1 cent.
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