Shares of Athersys Inc. have been trading over the counter among stock brokers since being suspended by the Nasdaq Stock Market last week pending their delisting.
The shares (Pink: ATHX) were trading for 2.1 cents on the Pink Open Market mid-Monday afternoon.
That was down from about 10 cents a share on Wednesday when Nasdaq suspended trading of the stock after determining Athersys could not comply with the stock market's listing requirement for minimum market value.
The Pink marketplace, also known as Pink Sheets, is the lowest tier of the over-the-counter marketplaces run by OTC Markets Group Inc. in New York City. Shares traded on the Pink market are considered extremely risky for investors.
The Pink Market does not require its companies to disclose financial information, and there is no minimum for financial benchmarks, according to GoBankingRates.com.
Athersys, which has developed an off-the-shelf stem cell therapy called MultiStem, has struggled for more than 18 months to raise capital and slow its cash burn so it can complete clinical trials and find development partners to take its product to market.
Two weeks ago, the Cleveland regenerative medicine company warned that it could file for bankruptcy protection if it is unable to "enter into a strategic transaction or obtain adequate financing" in the near-term.
And last week, Athersys said it had received the first tranche payment of $1.5 million from Healios K.K., its Japanese development partner. The Cleveland company also said it would try to raise $3.9 million by asking an unnamed investor to convert warrants it already owns and had hired A.G.P./Alliance Global Partners as a financial advisor.
Athersys has been working since 1994 to develop its MultiStem off-the-shelf adult stem cell therapy to treat some stroke, acute respiratory distress syndrome and traumatic injury patients.
Several challenges, including dwindling cash, loss of a $100 million equity purchase agreement, struggles with meeting Nasdaq listing requirements for its stock and some disappointing clinical study results from Healios have threatened the company's existence over the last 18 months.
