Business & Real Estate

Davis biotech firm faces Nasdaq ouster

Pam Marrone, founder and chief executive of Marrone Bio Innovations, Inc.
Pam Marrone, founder and chief executive of Marrone Bio Innovations, Inc. Photo courtesy Marrone Bio

Davis biotech company Marrone Bio Innovations Inc. could be on the verge of losing its Nasdaq stock market listing as a result of an accounting problem that has bedeviled the company for months.

Marrone said Tuesday it has been officially notified of potential delisting by Nasdaq after failing to file any quarterly financial results since the second quarter of last year.

The company said it plans to seek a hearing before Nasdaq’s listing qualifications panel. That means it will keep its place on Nasdaq for the time being.

Marrone also disclosed that it won’t file its results on time for the first quarter of 2015, “resulting in further non-compliance” with the Nasdaq requirements.

Marrone has been warning for months that it was in danger of being delisted by Nasdaq. If the company is kicked out of Nasdaq, it could get listed on a less-prestigious exchange.

The company has been struggling since revealing last year that it had discovered an auditing problem with some of its 2013 sales revenue. An in-house probe revealed some former employees had misled management about certain sales transactions. The company has said it would probably have to restate some previously reported quarterly earnings.

Marrone shares close Tuesday at $2.99, down 11 cents. The latest announcement came after the market closed.