AXM Pharma gets delisting notice from American Stock Exchange

By Elaine Rigoli

Tampa, Fla., April 21 - AXM Pharma, Inc. announced Friday that it has received a letter from the American Stock Exchange stating that it intends to file an application with the Securities and Exchange Commission to delist the company's common stock from the exchange.

Specifically cited was the company's financial condition, including its inability to maintain stockholders' equity in excess of $6 million.

Amex also indicated that during the period between Aug. 31, 2005 and Sept. 19, 2005, the company, in certain instances, failed to comply with Section 301 of the Amex Company Guide, according to a news release.

Under that rule, a listed company is not permitted to issue or register additional securities of a listed class until it has filed an application for the listing of such additional securities and received notification from the SEC that the securities have been approved for listing.

Amex also cited its concern regarding the ongoing SEC investigation into the company and other parties affiliated with the company for violations of federal securities laws.

AXM Pharma can appeal the determination.

The company said it is reviewing and considering its course of action, and if its common stock is delisted from the Amex, it intends to pursue a listing on the OTC Bulletin Board.

AXM Pharma, located in Shenyang, China, is a manufacturer of proprietary and generic pharmaceutical products.

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