Reeling from its weakened share price, Westaim Corporation, a Canadian company that makes wound care and pharmaceutical products from nanotechnology, is taking a closer look at its business strategy. In light of unimpressive stock performance — Westaim has been trading at less than $1, down from more than $5 one year ago — the company’s board has directed management to come up with some “strategic alternatives” that’ll start delivering value to shareholders STAT. The kick in the pants likely came in the form of a Nasdaq Staff Deficiency Letter, which Westaim received on April 10. The letter advised the firm that for 30 consecutive business days, the bid price of its stock had closed below the minimum $1 per share requirement.
So far, Westaim has identified two kinks in its armor: iFire Technology and Nucryst Pharmaceuticals. The former, a subsidiary of Westaim that makes flat panel display technology, has been experiencing development delays. And Nucryst, of which Westaim owns 74.8%, reported disappointing results from a Phase II clinical trial for a treatment for atopic dermatitis.
Westaim has until October 8, 2007 to get its act together. Nasdaq gives delinquent companies 180 calendar days to get back to $1 before delisting them.