KaloBios To Trade On 'Grey Markets'

KaloBios Pharmaceuticals Inc (NASDAQ: KBIO) is likely to trade on the 'Grey Market' and not one of the OTC markets since it has been halted, according to an OTC Markets Spokesperson.

The company reported that on December 18, 2015, it received a letter from the Nasdaq Listing Qualification Staff advising the Firm that Nasdaq has determined to delist the Firm's securities pursuant to its discretionary authority under Nasdaq Listing Rule 5101.

KaloBios said Thursday it has not determined if it would appeal the Nasdaq delisting. The pharmaceutical firm has until Monday to appeal. The letter cited numerous reasons for their decision, including the arrest of Martin Shkreli, the firm's controlling shareholder, former Chairman and former Chief Executive Officer for allegations of securities fraud.

If KaloBios decides not to appeal, the stock would be suspended from trading on Nasdaq at the opening of business on December 30.

Related Link: Martin Shkreli-KaloBios Saga An Example Of How Penny Stocks Can Be Misunderstood, Tim Sykes Says

Prosecutors in Brooklyn have since charged Shkreli with illegally taking the biotechnology firm Retrophin Inc (NASDAQ: RTRX) stock to pay off debts from unrelated business ventures.

Shares of KaloBios have been halted since December 17, the day of Shkreli's arrest.

KaloBios added 1,135 percent during the quarter, however, could reach near single-digit once trading resumes. KaloBios return on equity was -157.20 percent. The company's debt to equity ratio was 0.80 percent.