NuWay Medical Announces NASDAQ Delisting
Monday June 9, 9:30 am ET
LAGUNA HILLS, Calif., June 9 /PRNewswire-FirstCall/ -- NuWay Medical, Inc. (Nasdaq: NMED - News) announced today that it has received notification from The Nasdaq Listing Qualifications Panel (the "Panel") that NuWay's request for continued inclusion on The Nasdaq SmallCap Market pursuant to an exception to various Nasdaq MarketPlace Rules has been denied, and that NuWay's common stock will be delisted from Nasdaq as of the opening of business on Tuesday, June 10, 2003. The notification, which NuWay received on June 6, 2003, sets forth the Panel's determination that an exception to the Nasdaq continued listing qualifications would not be granted due to NuWay's failures to timely file periodic reports (including the existing delinquency regarding the required filing of a Form 10-Q for the quarter ended March 31, 2003), to make accurate and timely disclosure of material events, to comply with the minimum shareholders' equity requirement, and to timely file LAS forms. As a separate and additional basis to deny NuWay's request for continued listing, the Panel cited public interest concerns raised by the gravity of the past disclosure violations and its belief of the continued significant participation in NuWay by Mark Anderson, a former consultant, former creditor, and former significant shareholder of NuWay. Nasdaq disclosed to NuWay that Mr. Anderson, who was never an officer or director of NuWay, had a prior criminal record. NuWay had, in fact, cancelled its consulting agreement with Mr. Anderson prior to receiving this disclosure, and his remaining holdings in NuWay were purchased by New Millennium Capital Partners LLC (a company controlled and owned in part by NuWay's president Dennis Calvert), as disclosed in the Form 8-K filed by NuWay on April 10, 2003 (and as amended on May 1, 2003). Mr. Calvert states "Mr. Anderson has absolutely no ability whatsoever to exert any further influence on this company or its management, and has not had so for some time."
NuWay has determined not to appeal the decision of the Panel.
As a result of the public interest concerns cited by the Panel, and because NuWay is delinquent in the filing of its Form 10-Q for the March 31, 2003 quarter, NuWay's common stock will not be immediately eligible to trade on the Over-the-Counter Bulletin Board. NuWay's shares may become eligible if a market maker makes an application to have the shares quoted and such application is approved by Nasdaq. Although NuWay believes such an application will be made, there can be no assurance as to whether, if made, it will be approved. If the shares are not approved for quotation on the OTC Bulletin Board, they will be eligible for quotation on the National Quotation Service Bureau (the "pink sheets").
NuWay plans to file its Form 10-Q for the March 31, 2003 quarter within the next several days, and to file all future reports and make full and accurate disclosure of all information, in each case as and when required by law. |
