Nasdaq identifies additional bases for KaloBios delisting

Beleaguered US biotech company KaloBios Pharmaceuticals (Nasdaq: KBIO) has announced that, on December 30, 2015, it received a letter from the Nasdaq Stock Market concerning the delisting proceedings previously disclosed by the company in a filing with the Securities and Exchange Commission on December 23, 2015.

The letter notified the company that the Nasdaq Listing Qualification Staff has determined that the company's filing for protection under Chapter 11 of Title 11 of the US Bankruptcy Code on December 29, 2015, constitutes a separate and additional basis for delisting the company's securities under Listing Rules 5101, 5110(b), and IM-5101-1.  Additionally, the letter stated that the resignations of Tom Fernandez and Marek Biestek as members of the company's board of directors on December 27, 2015, resulted in KaloBios having only one remaining member on its audit committee, which also serves as a separate and additional basis for delisting the company's securities under Listing Rule 5605(c)(2)(A).

KaloBios previously disclosed that it has filed an appeal of the Nasdaq staff's decision to delist the company's securities (The Pharma Letter December 30). A Nasdaq appeal panel will consider these additional bases for delisting at the previously scheduled hearing on February 25, 2016.