Justice Sirikah

Verenium Corporation (VRNM) Faces Delisting From NASDAQ

by Justice Sirikah December 9, 2008

  Cambridge, Mass-based, pennystock cellulosic ethanol producer and specialty enzyme company, Verenium Corp. (NASDAQ: VRNM) is in receipt of a warning from NASDAQ noting that the company has violated the stock exchange’s Marketplace Rule 4450 (b)(1)(A).
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The clause stipulates that companies affiliated with NASDAQ Global Market must maintain a minimum market capitalisation of $50 million. As an alternative, a company may maintain total assets and total revenues of $50 million each for the most recently completed year (In this case 2007) or for two of the three most recent fiscal years.

  However, there is a provision of thirty calendar days for the company to regain compliance using either of the above-mentioned criteria. Should the company not gain compliance upon the lapse of the given period, its last hope to remain listed on the NASDAQ Global Market lies in filing an Appeal with the Stock Market’s Listing Qualifications Panel. Optionally, it may apply for a transfer of its listing to The NASDAQ Capital Market.
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  Meanwhile, the notification does not in any way impact on the listing of Verenium common stock, even during any appeal that could be filed, at least until further notice. The beleaguered company will continue to trade on the NASDAQ Global Market under the usual symbol VRNM.

  In mid-November Verenium reported posting a net loss of $133,242 for the third quarter that ended September 30, as compared to a net loss of $20,493 for the similar period, in 2007. Its total revenues for the quarter added up to $16.4 million, against $10.9 million recorded in the same quarter last year.

  As of September 30, 2008, the company reported, cash, cash equivalents and short-term investments totalling $22.1 million, apart from about $10 million in restricted cash.

  Verenium shares took a heavy beating at the end of September, and have since then traded for pennies. On December 8 shares gained 1.57% to $0.64, at the back of the previous close of $0.6301. The company’s year to date shares are down by 87.4 percent.
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Resources:

1. http://www.diversa.com/
2.  http://www.hotstocked.com/companies/v/verenium-corp-VRNM-70699.html#summary

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