SOUTH SAN FRANCISCO, Calif.,
Dec. 16, 2010 /PRNewswire-FirstCall/
-- Poniard Pharmaceuticals, Inc. (Nasdaq: PARD), a
biopharmaceutical company focused on innovative oncology therapies,
today announced that it has provided notice of voluntary prepayment
of its senior secured loan facility to GE Business Financial
Services Inc. and Silicon Valley Bank. The Company expects to
pay the approximately $12.3 million
balance on the facility, including interest and other fees payable
under the loan agreement, prior to year-end. Once repaid, all
covenants and restrictions related to the facility will lift,
including lender consent requirements restricting certain asset
sales, mergers and acquisition transactions and financial covenants
requiring the Company to maintain a minimum amount of unrestricted
cash.
The Company also announced today that it received approval from
the Nasdaq Stock Market Listing Qualifications Staff to transfer
the listing of its common stock from The Nasdaq Global Market to
The Nasdaq Capital Market. This transfer will be effective at
the opening of business on Friday, December
17, 2010, and the Company's common stock will continue to
trade under the symbol "PARD." The Nasdaq Capital Market is a
continuous trading market that operates in substantially the same
manner as The Nasdaq Global Market. All companies listed on
The Nasdaq Capital Market must meet certain financial requirements
and comply with Nasdaq's corporate governance requirements.
"The steps taken today serve to free up capital and assets as
well as maintain the continued liquidity of our common stock and
Nasdaq listing status as we continue our ongoing review of
strategic alternatives aimed at optimizing the value of the Company
and of our lead program, picoplatin," said Ronald A. Martell, chief executive officer of
Poniard Pharmaceuticals. "We continue to work diligently
toward a successful outcome to this strategic initiative."
As previously reported on July 22,
2010, Poniard received notification from the Nasdaq Listing
Qualifications Staff that the Company is not in compliance with
Nasdaq Listing Rule 5450(a)(1), which requires that listed
companies maintain a minimum bid price of $1.00 per share. The Company was provided
180 calendar days, or until January 18,
2011, to regain compliance with Nasdaq's minimum bid price
requirement. Upon transfer to The Nasdaq Capital Market, the
Company will be afforded the remainder of this compliance period.
In order to demonstrate compliance with the minimum bid price
requirement, the closing bid price of the Company's common stock
must be at least $1.00 per share for
a minimum of 10 consecutive business days.
If compliance with the $1.00 bid
price requirement cannot be demonstrated by January 18, 2011, the Company may be eligible for
an additional compliance period if it meets the continued listing
requirement for market value of publicly held shares and all other
initial listing standards for The Nasdaq Capital Market, with the
exception of the bid price requirement. Additionally, the
Company must provide written notice of its intention to cure the
deficiency during the second compliance period by effecting a
reverse stock split, if necessary. Nasdaq will review the
Company and, if eligible, will grant the additional compliance
period. However, if it appears that the Company will not be
able to cure the deficiency during the second compliance period, or
if the Company is not eligible for listing on the Capital Market at
the time of such review, Nasdaq will notify the Company of its
determination to delist the Company's common stock, which decision
may be appealed to a Nasdaq Listing Qualifications Panel.
Poniard expects to work closely with the Nasdaq staff in
evaluating options for maintaining its ongoing listing eligibility.
About Poniard Pharmaceuticals
Poniard Pharmaceuticals, Inc. is a biopharmaceutical company
focused on the development and commercialization of innovative
oncology products. For additional information please visit
http://www.poniard.com.
Forward Looking Statements
This release contains forward-looking statements describing,
among other things, the Company's projected financial position and
future operations, the adequacy of its cash resources, the
Company's ongoing evaluation of strategic alternatives, the
potential results of such evaluation process, the Company's goal of
optimizing and realizing shareholder value from picoplatin, the
anticipated benefits of transferring the Company's common stock to
The Nasdaq Capital Market, the Company's ability to achieve and
maintain compliance with applicable Nasdaq listing standards, and
actions by Nasdaq. Actual results and events may differ
materially from those indicated in these forward-looking statements
based on a number of factors, including risks and uncertainties
inherent in the Company's business, including the Company's
anticipated future operating losses, need for future capital and
ability to obtain future funding on favorable terms or at all; the
risk that strategic relationships may not be established on a
timely basis, on terms that are ultimately favorable to the
Company, or at all; the potential safety, efficacy and commercial
viability of picoplatin; the risk that the Company's additional
analyses of data from clinical trials of picoplatin may produce
negative or inconclusive results, or may be inconsistent with
previously announced results or previously conducted trials; the
Company's ability to retain key personnel; competition from third
parties; the Company's ability to preserve and protect its
intellectual property rights; the Company's dependence on
third-party manufacturers, suppliers and other contractors; changes
in technology, government regulation and general market conditions;
the receipt and timing of FDA and other required regulatory
approvals, if at all; and the risks and uncertainties described in
the Company's current and periodic reports filed with the
Securities and Exchange Commission, including the Company's Annual
Report on Form 10-K for the year ended December 31, 2009 and its Quarterly Report on
Form 10-Q for the quarter ended September
30, 2010. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this release. The Company undertakes no
obligation to update any forward-looking statement to reflect new
information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events.
SOURCE Poniard Pharmaceuticals, Inc.