RALEIGH, N.C., July 24, 2009 (GLOBE NEWSWIRE) -- DARA BioSciences, Inc. (Nasdaq:DARA) (the "Company"), a development-stage pharmaceutical company, announced today that the Company received an additional notice of non-compliance on July 21, 2009 from the staff of the Listing Qualifications Department of The NASDAQ Stock Market (the "Staff"). The Staff determined that the Company did not meet the terms of the extension granted to the Company in May 2009, which required the Company to demonstrate compliance with the $2.5 million stockholders' equity requirement of Listing Rule 5550(b). As a result, the Staff notified the Company that trading of the Company's common stock would be suspended at the opening of business on July 30, 2009, unless the Company requests a hearing before a NASDAQ Listing Qualifications Panel (the "Panel").
The Company intends to request a hearing before the Panel and plans to present its plan for regaining compliance with Listing Rule 5550(b) at its hearing. The hearing request will stay the suspension and delisting of the Company's securities pending the issuance of the Panel's decision following the hearing. There can be no assurance that the Panel will grant the Company's request for continued listing, and if it does not, the Company's common stock would be delisted from The NASDAQ Stock Market. If the Company is unsuccessful in maintaining its listing on The NASDAQ Capital Market, the Company's securities would be eligible for trading in the Pink Sheets and may also be eligible for trading in the OTC Bulletin Board, provided a market maker files the necessary application and such application is cleared.
About DARA BioSciences, Inc.
DARA BioSciences(tm), Inc. ("DARA") is a Raleigh, North Carolina-based development-stage pharmaceutical company that acquires promising therapeutic small molecules and develops them through proof of concept in humans for subsequent sale or out-licensing to larger pharmaceutical companies. Presently, DARA has two drug candidates with cleared IND's (Investigational New Drug) Applications from the US FDA. One of these drug candidates, KRN5500, has successfully completed a Phase 2a clinical trial treating cancer patients for neuropathic pain. It has a portfolio of drug candidates for neuropathic pain, type 2 diabetes, and psoriasis. For more information, please contact the Company at 919-872-5578 or visit our web site at http://www.darabio.com.
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, relating to among other things, DARA's expectations concerning the continued listing of its common stock on The Nasdaq Stock Market, expectations regarding its cash resources and management's plans, objectives and strategies. Such forward-looking statements are subject to factors that could cause actual results to differ materially for DARA from those projected. Those factors include risks and uncertainties relating to DARA's ability to regain compliance with the NASDAQ continued listing requirements, DARA's current cash position and its need to raise additional capital in the near term in order to be able to continue to fund its operations, risks and uncertainties relating to DARA's ability to develop and bring new products to market as anticipated, the current regulatory environment in which the Company develops and sells its products, the market acceptance of those products, dependence on partners, successful performance under collaborative and other commercial agreements, competition, the strength of DARA's intellectual property, the intellectual property of others, and other risk factors identified in the documents DARA has filed, or will file, with the Securities and Exchange Commission ("SEC"). Copies of DARA's filings with the SEC may be obtained from the SEC Internet site at http://www.sec.gov. DARA expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DARA's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based. DARA BioSciences and the DARA logo are trademarks of DARA BioSciences, Inc.