TARRYTOWN, N.Y.--(BUSINESS WIRE)--Regulatory News:
EpiCept Corporation (Nasdaq OMX Stockholm Exchange and Nasdaq: EPCT) today announced that its common stock will begin trading on the OTCQX® U.S. trading platform effective September 19, 2011. OTCQX® is the highest tier of the OTC market, and is exclusively for companies that meet the highest financial standards and undergo a qualitative review. EpiCept will simultaneously delist its stock from the Nasdaq Capital Market but maintain its primary listing on the Nasdaq OMX Stockholm Exchange. The Company’s ticker symbol on OTCQX® will remain “EPCT” and the Company will continue to make quarterly and other regulatory filings with the U.S. Securities and Exchange Commission.
Commenting on the reasons for the listing transfer, EpiCept President and CEO Jack Talley stated, “Nasdaq provided us until September 30, 2011 to meet the $1 minimum bid price requirement. At this time, our only recourse to regain compliance with the requirement would be to implement a significant reverse stock split. In light of current circumstances we believe a reverse split of the magnitude required by Nasdaq would be detrimental to the interests of our stockholders, particularly our stockholders in Sweden who do not directly benefit from our continued listing on Nasdaq in the U.S., and we would continue to face further Nasdaq listing issues. We have therefore decided not to implement a reverse stock split and instead to list our stock in the U.S. on OTCQX®, a quality-controlled segment of the OTC market. We believe this change will have a minimal impact on the ability of U.S. investors to hold and trade our stock and will not affect the large majority of our shareholders who hold and trade EpiCept stock on the Nasdaq OMX Stockholm Exchange. We believe after extensive review and discussion that this is the best course to preserve shareholder value.”
The OTCQX® platform is a rapidly growing alternative marketplace with more than 250 listed companies. The platform requires the maintenance of ongoing listing and financial disclosure requirements and continuous third-party review that distinguishes OTCQX-listed companies traded over-the-counter (OTC) from the more than 9,000 securities traded on the OTCBB and OTC Link. The combined market capitalization of companies listed on OTCQX® exceeds $1 trillion and includes such companies as Roche Holding Ltd. and AXA. More information about OTCQX® is available at www.otcqx.com.
OTCQX® offers a level of marketplace services formerly available only on a U.S. exchange. The trading platform provides trading information and access through all major online and full-service U.S. brokerage firms. Trades are settled and cleared in the U.S. similar to any Nasdaq or New York Stock Exchange stock and trade reports are disseminated through most financial data providers.
About EpiCept Corporation
EpiCept is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company’s lead product is Ceplene®, approved in the EU and Israel for the remission maintenance and prevention of relapse in adult patients with AML in first remission. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes AmiKet™, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies.
Forward-Looking Statements
This news release and any oral statements made with respect to the information contained in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements which express plans, anticipation, intent, contingency, goals, targets, future development and are otherwise not statements of historical fact. These statements are based on our current expectations and are subject to risks and uncertainties that could cause actual results or developments to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Factors that may cause actual results or developments to differ materially include: the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, the risks associated with our ability to continue to meet our obligations under our existing debt agreements, the risk that Ceplene® will not receive regulatory approval or marketing authorization in the U.S. or Canada, the risk that Ceplene® will not achieve significant commercial success, the risk that any required post-approval clinical study for Ceplene® will not be successful, the risk that we will not be able to maintain our final regulatory approval or marketing authorization for Ceplene®, the risk that Azixa™ will not receive regulatory approval or achieve significant commercial success, the risk that we will not receive any significant payments under our agreement with Myrexis, the risk that the development of our other apoptosis product candidates will not be successful, the risk that clinical trials for AmiKet™ or crolibulin will not be successful, the risk that AmiKet™ or crolibulin will not receive regulatory approval or achieve significant commercial success, the risk that we will not be able to find a partner to help conduct the Phase III trials for AmiKet™ on attractive terms, a timely basis or at all, the risk that our other product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later stage clinical trials, the risk that we will not obtain approval to market any of our product candidates, the risks associated with dependence upon key personnel, the risks associated with reliance on collaborative partners and others for further clinical trials, development, manufacturing and commercialization of our product candidates; the cost, delays and uncertainties associated with our scientific research, product development, clinical trials and regulatory approval process; our history of operating losses since our inception; the highly competitive nature of our business; risks associated with litigation; and risks associated with our ability to protect our intellectual property. These factors and other material risks are more fully discussed in our periodic reports, including our reports on Forms 8-K, 10-Q and 10-K and other filings with the U.S. Securities and Exchange Commission. You are urged to carefully review and consider the disclosures found in our filings which are available at www.sec.gov or at www.epicept.com. You are cautioned not to place undue reliance on any forward-looking statements, any of which could turn out to be wrong due to inaccurate assumptions, unknown risks or uncertainties or other risk factors.
*Azixa is a registered trademark of Myrexis, Inc.
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