La Jolla Pharmaceutical Company Receives Nasdaq Delisting Notice and Intends
to Appeal Determination
SAN DIEGO -- January 25, 2010
La Jolla Pharmaceutical Company (NASDAQ: LJPC) today announced that it
received a delisting notice from the Nasdaq Stock Market LLC on January 19,
2010. The notice indicates Nasdaq’s belief that the Company is operating as a
“public shell” and that the resulting entity in the proposed merger between
the Company and Adamis Pharmaceuticals Corporation (OTCBB: ADMP.OB) will not
meet Nasdaq’s initial listing requirements. Nasdaq has determined that the
continued listing and trading of public shells could be detrimental to the
interests of the investing public. Listing Rule 5101 provides Nasdaq with
discretionary authority to apply more stringent criteria for continued listing
and terminate the inclusion of particular securities based on any event that
occurs that in the opinion of Nasdaq makes inclusion of the securities on
Nasdaq inadvisable or unwarranted.
The Company intends to appeal the determination in the January 19 letter.
Absent such an appeal, trading of the Company’s common stock would be
suspended at the open of business on January 28, 2010 and a Form 25-NSE would
be filed with the Securities and Exchange Commission to remove the Company’s
securities from listing and registration on Nasdaq.
The Company’s appeal will stay the suspension of the trading of the Company’s
common stock pending a final decision by a Nasdaq Listing Qualifications
Panel. Accordingly, the Company does not expect any change to its listing
status until after the hearing date, which is expected to take place within
four to six weeks. Notwithstanding the appeal, the Company expects that its
stock will be delisted following the completion of the merger with Adamis as
the transaction will constitute a change of control and the combined entity is
not expected to satisfy the Nasdaq initial listing standards that would be
applied at that time.
La Jolla Pharmaceutical Company
Gail A. Sloan
Vice President of Finance and Secretary
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