KaloBios Interim CFO Thorn Resigns; Gets Delisting Notice From Nasdaq

(RTTNews) - KaloBios Pharmaceuticals Inc. (KBIO) disclosed in a regulatory filing that On December 21, 2015, Christopher Thorn, the company's Interim Chief Financial Officer, submitted his resignation from the company.

KaloBios also said that on December 21, 2015, it was notified by its independent registered public accounting firm, Marcum LLP, that Marcum has resigned as the Company's independent registered public accounting firm.

Marcum's resignation was not due to any reason related to the Company's reporting or accounting operations, policies or procedures. Marcum was engaged by the Company as the Company's independent registered public accounting firm on December 8, 2015, and accordingly, Marcum has not provided a report or completed any review on any of the Company's consolidated financial statements.

In addition, KaloBios announced that on December 18, 2015, it received a letter from the Nasdaq Listing Qualification Staff advising the Company that Nasdaq has determined to delist the Company's securities pursuant to its discretionary authority under Nasdaq Listing Rule 5101.

Nasdaq's letter to the Company cited a number of reasons for their decision, including the recent criminal indictment and arrest of Martin Shkreli, the Company's controlling shareholder, former Chairman and former Chief Executive Officer, based on allegations of securities fraud, among other things, as well as the arrest and indictment of Evan Greebel, the Company's former outside counsel, based on similar allegations, and a civil complaint from the U.S. Securities and Exchange Commission filed against Shkreli and Greebel based on similar allegations.

Nasdaq cited an additional basis for delisting based on the Company non-compliance with the filing requirements forth in the Nasdaq's Listing Rule because it has not filed its Quarterly Report on Form 10-Q for the period ended September 30, 2015.

The company has not yet determined whether it will appeal the Nasdaq Staff's decision to delist the company's securities. The deadline for the Company to request an appeal is December 28, 2015. If the company does not appeal, the Company's common stock will be suspended from trading on Nasdaq at the opening of business on December 30, 2015.