Star Scientific, Inc. Reports NASDAQ Notification Regarding Minimum Bid Price, Files Third Quarter Report with SEC
10 November 2009 - 9:30AM
PR Newswire (US)
PETERSBURG, Va., Nov. 9 /PRNewswire-FirstCall/ -- Star Scientific,
Inc. (NASDAQ:STSI) reported today that on November 5, 2009 it
received a deficiency letter from NASDAQ staff indicating that the
company is not in compliance with the NASDAQ minimum bid rule. The
letter noted that for the previous thirty consecutive trading days
the company's minimum closing bid price per share had been below
the $1.00 minimum bid price requirement set forth in NASDAQ Rule
5450(a)(1). In accordance with Marketplace Rule 5810(c)(3)(A), Star
has 180 days, or until May 4, 2010, to regain compliance. In its
notice NASDAQ indicated that if at any time during this period the
minimum closing bid price is $1.00 or more per share for at least
ten consecutive trading days, NASDAQ will provide confirmation that
the company has regained compliance and the matter will be closed.
The deficiency letter has no effect on the current listing or
trading of Star Scientific shares. (Logo:
http://www.newscom.com/cgi-bin/prnh/20090317/STARSCIENTIFICLOGO )
The company also reported that today it has filed its quarterly
financial report on Form 10-Q with the Securities & Exchange
Commission. The company reported net sales of $231,942 for the
third quarter compared with $136,725 for the same quarter in 2008.
The gross loss for the third quarter decreased from $435,514 in
2008 to $400,238 for the quarter ended September 30, 2009. The net
loss for the third quarter totaled $4.9 million compared with a net
loss of $4.4 million for the same quarter in 2008. The $.5 million
increase during third quarter 2009 was primarily linked with
increased research and development (R&D) expense during this
period. Net loss for the nine months ended September 30, 2009
totaled $17.2 million, a $0.9 million increase from the same period
on 2008. This increase related both to the increased R&D
expense and to increased legal costs for the jury trial portion of
the company's patent infringement lawsuit against RJ Reynolds. As
Star reported last week, the company and inVentiv Health LLC have
agreed to partner in the marketing and sales of CigRx(TM), the
nutraceutical product developed under the aegis of the company's
subsidiary, Rock Creek Pharmaceuticals. Discussions on an agreement
are continuing. At the same time Star is preparing a "modified risk
product" application and related materials, and believes it is on
track to submit to the FDA in first quarter 2010. The application,
which the company hopes will be the first of its kind to be
submitted to the FDA, will seek approval to market Ariva® BDL and
Stonewall® BDL as modified risk tobacco products under the
provisions of the Family Smoking Prevention and Tobacco Control Act
enacted in June, 2009. The Ariva® and Stonewall® brand extension
"BDL" signifies that the tobacco in the product has TSNA levels
that are substantially below the levels found in other tobacco
products. FDA approval of Ariva ® and Stonewall® BDL as designated
modified risk products would permit the company to share accurate
and balanced information with adult smokers and tobacco users about
the reduction in exposure to toxins that results from using these
products instead of inhaling cigarette smoke or choosing
traditional smokeless tobacco products that contain significantly
higher TSNA levels. This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Star Scientific, Inc. and
its consolidated subsidiaries ( collectively, the "Company") has
tried, whenever possible, to identify these forward-looking
statements using words such as "anticipates", "believes",
"estimates", "expects", "plans", "intends" and similar expressions.
These statements reflect the Company's current beliefs and are
based upon information currently available to it. Accordingly, such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause the Company's
actual results, performance or achievements to differ materially
from those expressed in, or implied by, such statements. These
risks, uncertainties and contingencies include, without limitation,
the challenges inherent in new product development initiatives, the
uncertainties inherent in the progress of scientific research, the
Company's ability to raise additional capital in the future
necessary to maintain its business, potential disputes concerning
the Company's intellectual property, risks associated with
litigation regarding such intellectual property, potential delays
in obtaining any necessary government approvals of the Company's
low-TSNA tobacco products, market acceptance of the Company's new
smokeless tobacco products, competition from companies with greater
resources than the Company, the Company's decision not to join the
Master Settlement Agreement ("MSA"), the effect of state statutes
adopted under the MSA, and the Company's dependence on key
employees and on its strategic relationships with Brown &
Williamson Tobacco Corporation in light of its combination with RJ
Reynolds Tobacco Company, Inc. The impact of potential litigation,
if initiated against or by individual states that have adopted the
MSA, could be materially adverse to the Company. Although the
Company believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no
assurance that the expectations will be attained or that any
deviation will not be material. See additional discussion under
"Risk Factors" in the Company's Annual Report on Form 10-K for the
year ended December 31, 2008, as filed with the SEC on March 16,
2009, and other factors detailed from time to time in the Company's
other filings with the SEC, available at http://www.sec.gov/. All
information in this release is current as of this date and the
Company undertakes no obligation to update or advise upon any such
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events. About Star Scientific Star Scientific is a
technology-oriented tobacco company with a toxin reduction mission.
It is engaged in the development of dissolvable smokeless tobacco
products that deliver fewer carcinogenic toxins (principally
tobacco specific nitrosamines, or TSNAs), through the utilization
of the innovative StarCured® tobacco curing technology, and in
sublicensing that technology to others. Star Scientific has a
Corporate and Sales Office in Petersburg, VA, an Executive,
Scientific & Regulatory Affairs office in Bethesda, MD, and
manufacturing facilities in Chase City, VA. About Rock Creek
Pharmaceuticals Rock Creek Pharmaceuticals develops pharmaceutical
products for treatment of addiction and other neurological
disorders. The company supports third-party academic, educational
and therapeutic advances in both these areas of research. Rock
Creek has scientific and research offices in Gloucester, MA. and a
regulatory office in Washington, DC. See Star's website at:
http://www.starscientific.com/ Contact: Sara Troy Machir Vice
President, Communications & Investor Relations (301) 654-8300
http://www.newscom.com/cgi-bin/prnh/20090317/STARSCIENTIFICLOGO
http://photoarchive.ap.org/ DATASOURCE: Star Scientific, Inc.
CONTACT: Sara Troy Machir, Vice President, Communications &
Investor Relations of Star Scientific, Inc., +1-301-654-8300, Web
Site: http://www.starscientific.com/
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