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Warnex will be forced to leave Toronto exchange next month

By Gareth Macdonald , 16-Jan-2012
Last updated on 16-Jan-2012 at 16:18 GMT2012-01-16T16:18:41Z

Contract services firm Warnex will leave the Toronto Stock Exchange (TSX) after failing to meet the requirements for continued listing.

According to a TSX statement issued last week the Quebec, Canada-based contractor – which provides a range of preclinical and trial-stage bioanalytical testing and analysis services to biopharma customers - will delist after the market closes on February 13.

In response Warnex said it is “actively exploring ways to maintain the value and liquidity of its Common Shares, including seeking a listing of its Common Shares on an alternative exchange.”

A Warnex spokeswoman told the company is unable to comment further and reiterated executive committee member Michael Singer's statement that Warnex is "currently under a strategic review and will update the market only at such time it has a material development."

Warnex has been under TSX scrutiny since August when it fell short of the exchange's listing requirement of a market capitalisation of C$3m after two consecutive quarters of low drug industry demand for analytical, quality control and laboratory services reduced its revenue and earnings.

In the months since August the firm has sought to turn things around, primarily by establishing an independent review committee to assess the viability of ongoing operations.

Subsequently, Warnex sold its medical labs arm to Gamma-Dynacare Medical Laboratories for C$7.5m (EUR5.8m) and - more recently - has agreed to divest its analytical services business to an unnamed industry buyer .

In the period Warnex also waved goodbye to long-serving company president and CEO Mark Busgang who tendered his resignation in November.

Quite what Warnex can do to further restructure its operations in light of the TSX delisting is unclear given that – when the $1.1m (€851,291) sale of its analytical services sale completes later this week – its only remaining division will be its bioanalytical services business.

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