Imagyn Says it May Be Cut From Nasdaq SmallCap List

Financially troubled Imagyn Medical Technologies Inc. said Monday that it no longer meets listing requirements for the Nasdaq’s SmallCap market.

In a report filed with the Securities and Exchange Commission, the Newport Beach maker and marketer of medical products disclosed that unless Nasdaq waives the requirements, the company must take steps to strengthen its stock price--or possibly face delisting from the SmallCap market.

The stock closed Monday at 34 cents a share, unchanged.

In March, the company faced a similar predicament when it failed to meet standards for Nasdaq’s broader national market. At that time, the company’s stock had been trading below $2 a share for weeks--and hadn’t met the national market’s minimum bid price of $5 a share for months. As a result, the stock moved off the national market to the more limited SmallCap market.

On Monday, the company said it may undertake a “reverse” stock split, reducing the number of its shares outstanding in a move to boost the stock price.

It said it might also take other actions to boost its net worth. The SmallCap market requires listed companies to maintain “tangible net worth”--assets minus liabilities and goodwill--at $2 million. Imagyn’s net worth is a negative $159.5 million, said Michael Montevideo, Imagyn’s chief financial officer.

If efforts to brighten its financial picture fail, the company said the stock may be reduced to trading on the electronic over-the-counter market.

The company also reported that it lost $35.6 million, or 95 cents a share, in the third quarter--more than twice the loss of $14.8 million, or 42 cents a share, for the comparable period last year. Revenue tumbled 80% to $8.2 million from $40.8 million.