KaloBios Pharmaceuticals Inc. (NASDAQ:KBIO) revealed on Wednesday that they received a letter on December 18, 2015 from the Nasdaq Listing Qualification Staff warning the Company that Nasdaq has determined to delist the Company's securities. The letter from Nasdaq mentioned a number of reasons for their decision, including the recent criminal indictment and arrest of former CEO Martin Shkreli based on allegations of securities fraud as well as the arrest and indictment of former outside counsel Evan Greebel based on similar allegations, and a civil complaint from the U.S. Securities and Exchange Commission sued Mr. Shkreli and Mr. Greebel for similar allegations.
KaloBios has not decided yet whether it will appeal the Nasdaq's decision to delist the Company's securities. The stock of KaloBios has been halted at $23.59 since the former CEO Mr. Shkreli who has been arrested last week. The finanl date for the Company to ask an appeal is December 28, 2015. If KaloBios does not appeal the delist from Nasdaq, the Company's common stock will be suspended from trading on Nasdaq at the opening of business on December 30, 2015.
KaloBios shares surged to $45.82 last month after breaking news that Mr. Shkreli had led an investor group to take over a majority stake in the company.
Mr. Shkreli was fired as chief executive by KaloBios on Tuesday after he was charged with allegedly misleading investors in his hedge fund and raiding a public company to cover the losses. Mr. Shkreli pleaded not guilty and denied all charges. He also mentioned that he had been targeted by authorities for Turing’s drug-price increases and his over-the-top public persona. Mr. Shkreli resigned as chief executive of Turing on Friday.