Sontra threatened with delisting by Nasdaq

By Ted A. Knutson

Washington, Nov. 29 - Sontra Medical Corp. said it received a Nasdaq staff deficiency letter Wednesday indicating the company is not in compliance with the $1.00 minimum closing bid price requirement for continued listing on The Nasdaq Capital Market.

Sontra received the letter because the bid price of its common stock closed below $1.00 per share for 30 consecutive business days.

Sontra will be provided 180 calendar days, or until May 22, 2006, to regain compliance. Under Nasdaq rules, if at any time before that date the bid price of the company's common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Sontra will be provided written notice that it complies under the rule.

If compliance with the rule cannot be demonstrated by May 22, 2006, Nasdaq will determine whether Sontra meets the Nasdaq Capital Market initial listing criteria, except for the bid price requirement. And if Sontra meets the initial listing criteria, it will be granted another 180 calendar days to comply with the rule. If it is determined the company is not eligible for this additional compliance period, Sontra will be provided with a written delisting notice.

Sontra said in an 8-K filing with the Securities and Exchange Commission that it has not determined what action, if any; it will take in response to the Nasdaq letter.

Sontra is a biotechnology company based in Franklin, Mass., that develops skin permeation technology for use in transdermal drug delivery and diagnosis.

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