Biostage Inc., (Nasdaq: BSTG), a biotechnology company developing bioengineered organ implants to treat cancers and other life-threatening conditions of the esophagus, bronchus and trachea, announced today that, as anticipated, on May 18, 2017, the Company received a letter from the Listing Qualifications Staff of The NASDAQ Stock Market LLC indicating that the Company's failure to regain compliance with the minimum $1.00 bid price requirement by May 17, 2017, and its non-compliance with the $2.5 million stockholders' equity requirement as of the quarter ended March 31, 2017, could serve as a basis for delisting the Company's common stock from The Nasdaq Capital Market unless the Company timely requests a hearing before the Nasdaq Hearings Panel (the "Panel").
The Company plans to timely request a hearing before the Panel, which request will stay any delisting action by the Staff at least pending the issuance of the Panel's decision following the hearing and the expiration of any extension period that may be granted by the Panel. At the hearing, Biostage will present its plan to evidence compliance with the bid price and stockholders' equity requirements and request an extension of time within which to do so. The Panel has the discretion to grant the Company an extension through no later than November 14, 2017. The Company's common stock will continue to trade on Nasdaq under the symbol "BSTG" at least pending the ultimate conclusion of the hearing process. Biostage intends to provide a further update when additional relevant information becomes available.
About Biostage
Biostage is a biotechnology company developing bioengineered organ implants based on the Company's new Cellframe™ technology which combines a proprietary biocompatible scaffold with a patient's own stem cells to create Cellspan organ implants. Cellspan implants are being developed to treat life-threatening conditions of the esophagus, bronchus or trachea with the hope of dramatically improving the treatment paradigm for patients. Based on its preclinical data, Biostage has selected life-threatening conditions of the esophagus as the initial clinical application of its technology.
Cellspan implants are currently being advanced and tested in collaborative preclinical studies. Preclinical, large-animal safety studies, conducted in compliance with the FDA Good Laboratory Practice ("GLP") regulations, for the Company's Cellspan Esophageal Implant product candidate are ongoing, in support of Biostage's goal of filing an Investigational New Drug application ("IND") with the U.S. FDA in the third quarter of 2017. Upon IND approval, the Company plans to initiate its first-in-human clinical trials for its esophageal implant product candidate by the end of 2017.
For more information, please visit www.biostage.com and connect with the Company on Twitter and LinkedIn.
