HALTOM CITY, Texas, March 1, 2002 (PRIMEZONE) -- PharmChem Inc. (Nasdaq:PCHM) today announced that it has received a letter from The Nasdaq Stock Market, Inc. indicating that the Company is out of compliance with the $5 million minimum market value requirement for its publicly held shares, as stated in Marketplace Rule 4450(a)(2). Publicly held shares exclude shares held directly or indirectly by any officer or director of the Company and by any person who is the beneficial owner of more than 10% of the total shares outstanding.
The letter provides PharmChem with 90 calendar days, or until May 15, 2002, to come into compliance with this rule, which would require the company's publicly held shares to maintain a minimum market value of $5 million for a minimum of 10 consecutive trading days during that period. If PharmChem fails to meet this requirement, it will become subject to delisting from The Nasdaq National Market, at which the time the company can appeal the delisting to the Nasdaq Listing Qualifications Panel. In addition, the company also has the option of applying to transfer its securities to The Nasdaq SmallCap Market, where it also would have to satisfy continued inclusion requirements for that market. Market value of publicly held shares on The Nasdaq SmallCap Market must be $1 million or more.
PharmChem is a leader in the field of providing services to clients seeking to detect and deter the use of illegal drugs. PharmChem operates forensic drug testing laboratories in Haltom City, Texas and London, England.