One of Minnesota’s 100 largest public companies is transferring its stock from the Nasdaq exchange to an “over-the-counter” market, as it has been unable to meet certain Nasdaq requirements.

Plymouth-based Urologix, Inc., develops, manufactures, and markets minimally invasive medical products that use microwave technology for the treatment of symptoms of benign prostatic hyperplasia, an enlargement of the prostate.

The company said earlier this year that it faced delisting from the Nasdaq Capital Market because its shares did not meet the stock exchange’s minimum bid price requirement of $1 per share. It initially had until January 22 to regain compliance, which requires shares to close at or above the $1 threshold for at least 10 consecutive business days, but it failed to meet that requirement.

The company has also failed to meet Nasdaq’s minimum shareholders’ equity requirement of $2.5 million.

In April, its deadline for meeting the minimum bid price was extended to June 17, and its deadline for regaining compliance with the shareholders’ equity requirement was pushed back to September 30.

But the company said Thursday that it decided to transfer its stock to the OTCQB Marketplace, where it will begin trading Friday under the ULGX ticker, which Urologix also used on the Nasdaq exchange.

The decision to transfer was made “following the board of directors’ detailed review of numerous factors.” Those factors included “the advantages and disadvantages of effecting a reverse stock split in order to regain compliance with Nasdaq’s continued listing requirements, with the conclusion that doing so was not in the company’s or its shareholders’ best interests at this time, especially given the remaining shareholders’ equity compliance issue,” Urologix said.

Companies that are unable to meet Nasdaq’s requirements often transition to so-called “over-the-counter” marketplaces. The OTCQB marketplace features more than 3,100 securities for U.S. companies, which are subject to regulatory reporting requirements but don’t have financial requirements like Nasdaq. St. Louis Park-based restaurant chain Granite City Food & Brewery recently made a similar transition after being delisted from Nasdaq.

Shares of Urologix’s stock were trading down about 12.5 percent Thursday morning at $0.42.

The transfer to the OTCQB Marketplace “will provide our shareholders with a seamless transition in the trading of Urologix shares,” Greg Fluet, who was appointed CEO earlier this year, said in a statement.

The move allows Urologix to “allocate valuable resources towards higher-return endeavors, specifically our exciting strategic growth initiatives,” Fluet said. “We continue to focus on improving our operating and financial performance and believe that as we demonstrate progress on these objectives our market capitalization will reflect the improving results.”

For its fiscal year that ended June 30, 2012, Urologix reported $17.03 million in revenue, up 35 percent from $12.57 million the previous year. Its net loss, however, widened from $3.7 million to $4.7 million.

In its most recent quarter, which ended March 31, revenue totaled $4.1 million, down 13.8 percent from the same period a year ago. It reported a net loss of $1 million, or $0.05 per diluted share, compared to a net loss of $968,000, or $0.07 per share, during the prior-year period.

Urologix is Minnesota’s 15th-largest publicly traded medical-device manufacturer based on revenue.