Arrowhead Research Corporation (Arrowhead), a nanotechnology company, has received an approval to transfer the listing of its common stock from The NASDAQ Global Market to The NASDAQ Capital Market, effective March 9, 2009. The company's common stock will continue to trade under the symbol ARWR. The NASDAQ Capital Market is a tier of NASDAQ Stock Market for the companies with low market capitalization needs than the Global Market tier.
Our transfer to the Capital Market continues our NASDAQ listing status, allowing our investors to continue to benefit from the liquidity provided by the NASDAQ Stock Market and also maintaining our visibility to the investment community, said Christopher Anzalone, Arrowhead’s president and chief executive officer. It is an unfortunate byproduct of the current economic environment that many companies our size can no longer satisfy the requirements to maintain their NASDAQ Global Market listing, however, the transfer allows us to continue to execute on our business plan and capitalize on the market opportunity for nanotechnology.
The NASDAQ Capital Market is a continuous trading market which operates in the same manner as The NASDAQ Global Market and currently lists the securities of about 470 companies. All companies listed on The NASDAQ Capital Market must meet some financial needs and stick to NASDAQ’s corporate governance standards.
As disclosed on February 11, 2009, the company received notice from NASDAQ Stock Market that it had determined that the company does not meet the minimum $10,000,000 in stockholder equity needed for continued listing for NASDAQ Global Market. While NASDAQ Stock Market has provided the company the opportunity to submit a plan for regaining compliance with this need, the company determined to proceed with transfer of its listing to NASDAQ Capital Market to preserve an orderly market in its common stock via the current global economic crisis. The stockholder equity needs for The NASDAQ Capital Market is $2,500,000.