Davis biotech firm Marrone Bio Innovations Inc., which spent much of 2015 dealing with a probe of internal financial irregularities, has been warned that it is in jeopardy of being delisted by the Nasdaq stock market.
Nasdaq requires that publicly traded companies have at least three members on their internal audit committee. Marrone has only two because Shaugn Stanley, a former Marrone board member and member of the firm’s audit committee, did not stand for re-election this year, with his term expiring on Dec. 17.
Marrone Bio has until June 14 to fill the required third position on its audit committee. The company has informed the U.S. Securities and Exchange Commission of its intention to make the required appointment in the near term.
MBI has been dealing with problems dating back to September 2014, when it disclosed that it had launched an in-house probe over $870,000 worth of reported sales transactions.
During the upheaval, MBI announced multiple postponements of quarterly financial results. The Davis firm has since brought its financial reporting processes up to date.