Unilife investigating potential violations by former executives
- Unilife investigating possible violations by former CEO and chairman of Board of Directors.
- Conewago Township-based company's stock dropped to all-time low following announcement.
- Company, currently trading below 40 cents per share, needs to rise above $1 to keep NASDAQ listing.
Unilife Corp.'s stock continues to tumble following the discovery of possible policy and procedural violations by two former executives.
The Conewago Township-based developer and commercial supplier of injectable drug delivery systems announced on May 8 that it would be postponing its third quarter earnings conference call after its current management discovered "violations of company policies and procedures and possible violations of law and regulation" by a former CEO and chairman of the board of directors, according to a company news release.
On May 9, Unilife's stock, which is traded on NASDAQ, closed at 36 cents per share, its lowest daily closing price since going public in February 2010, according to Yahoo Finance.
While Unilife's release doesn't provide names, the company's only former CEO is founder Alan Shortall, who stepped down on March 14, according to a previous news release.
The release also mentions that the former board chairman had resigned in 2015, which would point to Jim Bosnjak, who the company announced had resigned in October 2015 due to health reasons. He was the only former chairman to resign during 2015.
Both were expected to remain involved with the company — Shortall as a consultant and Bosnjak as an adviser, according to various news releases.
Unilife did not respond to requests for confirmation of these names or whether they still maintain associations with the company.
While Monday marked the low point for Unilife's stock, it's struggles aren't a new phenomenon. The stock closed at just 51 cents per share the previous Friday.
The company is actually in danger of losing its NASDAQ listing after closing below $1 per share for 30 consecutive days. It has until May 31 to close above $1 for 10 consecutive business days to regain compliance, according to NASDAQ rules, but certain extenuating circumstances do exist.
The corporation saw a brief respite in February, after it announced a collaboration with a California-based biotech company that could net up to $75 million.
Unilife's stock closed at or above $1 per share on nine of 14 business days between Feb. 3 and Feb. 23, including a five-month high of $1.17 on Feb. 22. But it hasn't closed above 95 cents per share since that point.