Skyline Medical Faces Stock Delisting

Eagan firm seeks Nasdaq hearing.

Regulators with Nasdaq Stock Market have decided to delist Eagan-based Skyline Medical Inc. Skyline disclosed the letter it received from Nasdaq in a Tuesday filing with the U.S. Securities and Exchange Commission.
 
Skyline Medical’s stock is still being traded because the company has signaled its intent to request a hearing before Nasdaq Hearings Panel, which effectively stays the delisting.
 
Stocks that consistently trade below $1 per share risk being delisted. Skyline’s stock has been trading below $1 per share since February 29. On Tuesday, Skyline’s stock closed at 13.5 cents per share.
 
In April, the company disclosed that it had received an initial letter from Nasdaq, indicating that because the stock had traded below $1 per share for 30 consecutive trading days, it was no longer in compliance with the exchange’s minimum closing bid price requirement. At that point, Skyline had 180 calendar days to regain compliance.
 
If the company’s stock is delisted, it could trade on the over-the-counter market.
 
In a separate SEC filing on Tuesday, the company disclosed that Dr. Carl Schwartz has been appointed the company’s executive chairman and has resigned from his position as the company’s interim CEO. The change was effective yesterday. The filing did not indicate who would now be serving as the company’s CEO.
 
Schwartz stepped in as interim CEO in May after previous CEO Joshua Kornberg resigned. A representative of Skyline Medical could not immediately be reached for comment on Wednesday.
 
Skyline’s product is its patented Streamway System, a surgical waste fluid disposal system that doctors can use in operating or procedure rooms.
 
At the end of August, the company announced plans to form a joint venture with the Maryland-based Electronic On-Ramp Inc., which provides digital security for federal agencies. The joint venture will bid on federal contracts, providing medical products for “mobile operating rooms, among other activities.” According to the company’s statement, EOR would own 51 percent of the joint venture.
 
The company has been unprofitable since its inception. The company was founded in 2002 as BioDrain Medical Inc. 
 
According to the company’s most recent annual SEC filing, Skyline posted revenue of just $654,000 for 2015, which was a drop from its revenue of $952,000 for 2014. The company reported a net loss of $4.8 million last year. The company also reported that it had an accumulated deficit of $40.5 million.