CollabRx Inc (NASDAQ:CLRX) has received notice from the NASDAQ OMX Group that it has maintained the minimum bid price and regained its listing status on the exchange. The company had received notice of the delisting in November and had until May to regain compliance. The company is still non-compliant on rule 5550(b)(1) which states they need to maintain shareholder equity of $2.5 million. It will present a plan to the qualifications panel in mid-February detailing how it intends to address the issue. Until that time the stock will continue to trade on the NASDAQ exchange. The company will either be deemed to be compliant at that time or possibly attain an extension to the current timeline for addressing the issue.
Along with the good compliance news, the company also has entered into a non-binding LOI to establish a relationship with Medytox. The agreement would secure funding for CLRX which the company needs to continue daily operations. During this period the two units will continue to negotiate a possible merging of the models. Both sides still need to perform their due diligence, sign a definitive agreement and attain shareholder approval of the details involved. These are all standard procedures that must happen before any merger can move forward. CollabRx Inc (NASDAQ:CLRX) secured $2.3 million from Medytox in early January and took $135k soon after.
CollabRx Inc (NASDAQ:CLRX) builds and sells data and decision support products for the medical field. They focus on genomics-based interpretation of said data. They intend to become the global leaders in these services. By focusing on becoming the single-source solutions for provides that include lab services, E-record keeping, Information systems and billing services they will create a one-stop portfolio for its clients.
The stock ran up on the news it avoided the permanent delisting but failed to take out the recent intra-day high of $3.37. This could indicate a ceiling of resistance has developed and until the stock breaks through that sideways trading can be expected.
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