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| 8-K - GENEREX BIOTECHNOLOGY CORP | v199423_8k.htm |
Generex
Common Stock to be Quoted on the
OTCQB
Under the Symbol “GNBT”
Beginning
Thursday, October 21, 2010
Common
Stock will no longer be traded on the
NASDAQ
Capital Market beginning on that date
Generex
Will Continue to Pursue its Product
Development
& Commercialization Initiatives Unabated
WORCESTER, MA, October 19,
2010 (PRNewswire) – Generex Biotechnology Corporation (www.generex.com)
announced today that on October 19, 2010 the NASDAQ Listing Qualifications Panel
notified the Company that the Panel has determined to delist the Company’s
common stock from the NASDAQ Capital Market and will suspend trading of the
stock effective at the open of trading on Thursday, October 21, 2010 as a
consequence of the Company’s non-compliance with NASDAQ’s minimum $1.00 per
share closing bid price requirement.
The
Company has been advised by Pink OTC Markets Inc., which operates an electronic
quotation service for securities traded over-the-counter (OTC), that the
Company’s common stock is immediately eligible for quotation on the OTCQB
effective with the opening of the markets on October 21, 2010. The
OTCQB is a market tier for OTC traded companies that are registered and
reporting with the Securities and Exchange Commission. The Company
has also been advised that its common stock will continue to trade under the
symbol “GNBT”. Investors will be able to view real time stock quotes
for GNBT at http://www.otcmarkets.com.
In
September, 2010, there were 3,871 securities quoted on the OTCQB and the
aggregate dollar value traded was just under $4 billion.
Generex
management and its Board of Directors remain fully committed to the aggressive
pursuit of the Company’s product development and commercialization
initiatives. “The move to the OTCQB is not reflective of the value
and tremendous potential of our pipeline,” said Mark Fletcher, the Generex
Interim President & Chief Executive Officer. “Our efforts to move
our pipeline products forward to commercialization will continue
unabated.”
At the
reconvened Special Meeting of the Company’s stockholders held on October 18,
2010, the reverse stock split proposal put forward by the Company’s Board of
Directors as a means of maintaining the Company’s NASDAQ listing did not achieve
the necessary vote in time for the meeting.
Of the
269,360,643 shares outstanding as of the August 12 record date, 191,872,323
shares (71.24%) were voted. The 127,819,048 shares voted in favor of
the proposal represented 66.61% of votes cast and 47.45% of the outstanding
shares. Approval of the proposal required a majority of the
outstanding shares to vote in favor; accordingly, the vote fell 2.56%
short.
During
the week following the Company’s October 11th
announcement of its pending acquisition of a 51% equity interest in Global
Medical Direct, LLC, interest in the reverse stock split proposal increased
dramatically. During that period, the number of shares voted in favor
of the proposal increased by 42,312,013 (an increase of nearly 50%) and the
number of shares voted against the proposal decreased by 29,497,077 (a decrease
of almost 32%) and the number of shares voted overall increased by 11,749,664 (a
13% increase).
In light
of the increased stockholder support for the reverse stock split proposal as
evidenced by the voting pattern over the past week, the Company will appeal the
Panel’s delisting determination to the NASDAQ Listing and Hearing Review
Council. The Listing Council is a standing independent advisory
committee appointed by NASDAQ’s Board of Directors that, among other things,
hears appeals of Panel decisions to delist. The suspension of the
Company’s common stock from trading on NASDAQ will remain in place throughout
the appeal process, although the stock will be quoted on the OTCQB during that
time.
About
Pink OTC Markets Inc.
Pink OTC
Markets Inc. is a financial information and technology services company that
operates an inter-dealer electronic quotation and trading system in the
Over-The-Counter (or OTC) securities market. It is not registered
with the Securities and Exchange Commission as a stock exchange or broker-dealer
firm. Investors should contact a broker-dealer firm to trade in a
security quoted on the OTCQB or the other OTC tiers operated by Pink OTC Markets
Inc. More information is available at http://www.otcmarkets.com.
About
Generex Biotechnology Corporation
Generex
is engaged in the research, development, and commercialization of drug delivery
systems and technologies. Generex has developed a proprietary
platform technology for the delivery of drugs into the human body through the
oral cavity (with no deposit in the lungs). The Company's proprietary
liquid formulations allow drugs typically administered by injection to be
absorbed into the body by the lining of the inner mouth using the Company's
proprietary RapidMist™ device. The Company's buccal insulin spray
product, Generex Oral-lyn™, which has been approved in India, Lebanon, Algeria,
and Ecuador for the treatment of subjects with Type-1 and Type-2 diabetes, is in
Phase III clinical trials at several sites around the world. Antigen
Express, Inc. is a wholly owned subsidiary of Generex. The core
platform technologies of Antigen Express comprise immunotherapeutic vaccines for
the treatment of malignant, infectious, allergic, and autoimmune
diseases. For more information, visit the Generex website at www.generex.com or
the Antigen Express website at www.antigenexpress.com.
Safe
Harbor Statement
This
release and oral statements made from time to time by Generex representatives in
respect of the same subject matter may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements can be identified by
introductory words such as “expects,” “plans,” “intends,” “believes,” “will,”
“estimates,” “forecasts,” “projects,” or words of similar meaning, and by the
fact that they do not relate strictly to historical or current
facts. Forward-looking statements frequently are used in discussing
potential product applications, potential collaborations, product development
activities, clinical studies, regulatory submissions and approvals, and similar
operating matters. Many factors may cause actual results to differ from
forward-looking statements, including inaccurate assumptions and a broad variety
of risks and uncertainties, some of which are known and others of which are
not. Known risks and uncertainties include those identified from time
to time in the reports filed by Generex with the Securities and Exchange
Commission, which should be considered together with any forward-looking
statement. No forward-looking statement is a guarantee of future
results or events, and one should avoid placing undue reliance on such
statements. Generex undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise. Generex cannot be sure when or if it will be
permitted by regulatory agencies to undertake additional clinical trials or to
commence any particular phase of clinical trials. Because of this,
statements regarding the expected timing of clinical trials or ultimate
regulatory approval cannot be regarded as actual predictions of when Generex
will obtain regulatory approval for any “phase” of clinical trials or when it
will obtain ultimate regulatory approval by a particular regulatory
agency. Generex claims the protection of the safe harbor for
forward-looking statements that is contained in the Private Securities Litigation Reform
Act.
Generex
Contacts:
Investor
Relations Contacts:
Generex
Todd
Falls
800-391-6755
Seahawk
Capital Partners, Inc.
Joseph
Moscato
646-599-6222
American
Capital Ventures, Inc.
Howard
Gostfrand
877-918-0774
Media
Contact:
Beckerman
Public Relations
Christina
Brozek
201-452-4849