Copiague, New York, December 31, 1999 - American Biogenetic Sciences, Inc. (ABS) (NASDAQ:MABAC) announced today that it has filed a request with The Nasdaq Stock Market, Inc. for its Class A Common Stock to continue to be listed on The Nasdaq SmallCap Market via an exception from the minimum bid price and net tangible assets requirements for listing on that market for an additional 60 days through February 29, 2000 in order to give it time to complete two transactions which should enable it to meet the listing requirements.
As previously announced, ABS failed to meet the minimum bid requirement as of November 24, 1999. It failed to meet the net tangible assets requirement in the Form 10-Q as filed on August 13, 1999. However, on December 2, 1999 ABS was granted a temporary exception from these standards, subject to it meeting certain conditions. The exception was scheduled to expire on December 31, 1999.
The company has been actively involved in negotiations concerning two separate transactions, one a strategic alliance which includes an investment component and the second an investment transaction. If both transactions are completed, ABS would then meet the net tangible assets requirement for continued listing on the Nasdaq SmallCap Market, and the company believes it also would adequately address the Nasdaq Stock Market, Inc.'s concerns about its continued ability to meet that requirement over the next year or more. However, because negotiations are not yet complete and because one of the transactions could require stockholder approval, ABS is requesting the additional time to complete the two transactions. ABS has previously obtained stockholder authorization permitting the Board of Directors to implement a reverse stock split of between 1 for 2 and 1 for 8 to address the minimum bid price issue should that be necessary. There can be no assurance that the Nasdaq Stock Market, Inc. will grant the request or that either of the transactions will be completed.
If ABS's Class A Common Stock should cease to be listed on The Nasdaq SmallCap Market, it may continue to be listed on the OTC-Bulletin Board.
American Biogenetic Sciences, based in Copiague, New York, researches and develops diagnostic tests for cardiac conditions and infectious diseases, as well as new treatments for neurological disorders including epilepsy, migraine, mania, Parkinson's and Alzheimer's disease. ABS also seeks out new technologies and conducts research and development through its Global Scientific Network in the U.S., Europe, Israel, Russia and China.
Statements about ABS's future exceptions, including its ability to successfully complete negotiations on a strategic alliance or investment transaction, the action of The Nasdaq Stock Market, Inc. on its request for an extension of its exception, quotation of its Class A Common Stock on the OTC Bulletin Board and all other statements in the press release other than historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time ABS's actual results could differ materially from expected results.