Bioheart, Inc. (Bioheart) has received a letter from Nasdaq Stock Market (Nasdaq) on January 14, 2009. Notice based upon the company's non-compliance with the Nasdaq's independent director requirement as set forth in Nasdaq Marketplace Rule 4350(c)(1), which requires that the company should maintain a majority of independent directors.
According to the Nasdaq Marketplace Rule 4350(c)(1), with respect to the requirement to have a majority of independent directors, the company is required to regain compliance with such board composition by the earlier of its next annual shareholders meeting or January 7, 2010 provided, however, that if the next annual shareholders meeting is held before July 6, 2009, then the company must evidence compliance no later than July 6, 2009 (the Compliance Period).
If the company does not regain compliance within the Compliance Period, Nasdaq will provide the company with written notification that the company’s common stock will be delisted from the Nasdaq Capital Market. At that time, the company may appeal the determination by the Nasdaq Staff to delist its common stock to a Listing Qualifications Panel.
The company is presently considering actions that may allow it to regain compliance with Nasdaq continued listing standards and maintain its Nasdaq listing. There is no guarantee that the company will be able to take any of these actions or that any of the actions will be sufficient to allow the company’s Nasdaq listing to continue or for how long such listing will continue. If the Company is unsuccessful in maintaining its Nasdaq listing, then the company may pursue listing and trading of the company’s common stock on the Over-The-Counter Bulletin Board or another securities exchange or association with different listing standards than Nasdaq.