The NASDAQ stock exchange finally ran out of patience with NMT Medical Inc. (NSDQ:NMTI) and moved to de-list the company’s stock effective Feb. 7.
The Boston-based cardiac implant maker had flirted with de-listing since last summer, when the exchange sent its first warning letter after NMT failed to meet its minimum stock price requirement.
The troubles began June 17, when it reported that its flagship StarFlex device failed to meet the primary endpoint of a clinical trial. The news sent NMTI’s stock price down 79 percent that day; shares have averaged around 41 cents per share since then, a far cry from their all-time high of $24.56. Trying to regroup, NMT said it would "tightly manage expenses, preserve cash, evaluate financing alternatives and adjust our operating plan accordingly," as it waits for the final results of the Closure I trial to be completed in November, according to its second-quarter earnings release. In August, the company’s poor stock performance drew a first de-listing warning from the NASDAQ exchange. Later that month, former CEO Frank Martin and chairman James Mahoney stepped down, with COO Richard Davis taking the helm as chairman, president and CEO.
NMT said received the de-listing notion Jan. 27, notifying it that it both failed to meet the minimum share price requirement and a rule mandating a minimum market capitalization of $35 million (NMTI’s market cap was about $6.1 million this morning). The company chose not to appeal the NASDAQ ruling, according to a filing with the federal Securities & Exchange Commission.
NMTI stock was down nearly 10 percent to 38 cents in mid-morning trading. The shares are slated to shift to the OTC Bulletin Board exchange next week.