Vaso Active Pharmaceuticals ( VAPH) on Thursday will pull its shares from the Nasdaq Stock Market indefinitely after learning that it is being investigated by the Food and Drug Administration and NASD. The move, which comes a week after trading in the once highflying stock was suspended by the Securities and Exchange Commission, reflects the "substantial administrative and cash burdens" the company faces after hearing the concerns raised by the FDA and NASD over the past week. The SEC suspension had been scheduled to end April 15. The SEC trading suspension followed a series of articles on this Web site noting inconsistencies in Vaso's
clinical claims and troubling aspects of its pedigree. In a meeting Monday, Vaso said, the FDA raised a number of concerns about its disclosures and said it was authorized by the SEC to seek injunctive relief against the company. "During that meeting, the company stated its intention to review its public disclosure, press releases and other public statements and to take whatever remedial action may be appropriate," Vaso said in a release. "It also represented that it would diligently seek to clarify the status of its products under current FDA regulations, would issue disclosure regarding the FDA regulation of its activities and products and the results of its dialogue with the FDA, and would endeavor to resolve on a timely basis any concerns communicated by the staff." Among other things, Vaso agreed to stop selling its products, which currently comprise an athlete's foot treatment called Termin8, until the FDA concerns are resolved. Vaso also said it received a letter from the Listing Investigations arm of Nasdaq saying the department has opened an inquiry to "ensure the company's ongoing compliance with the Nasdaq's inclusion requirements." Vaso noted the department warned it could take "any action that may be appropriate," including removal of the securities.
"In view of the substantial administrative and cash burdens being borne by the company at this time, the company has determined that it is in the best interest of shareholders to voluntarily cause its shares to be removed from Nasdaq so that the company can focus its attention and resources on addressing the other issues addressed in this press release," the company said. "The company has been informed that its securities will be delisted, effective the opening of the markets on Thursday, April 8, 2004. At an appropriate time, the company will seek to cause its securities to be quoted on an exchange, Nasdaq or an automated quotation system. There can be no assurance that the company will be successful," Vaso said. "The company urges investors not to rely on the company's existing reports filed pursuant to the Exchange Act, nor on any announcements, press releases or public statements issued by it or others relating to its financial condition, results of operations or its business or products generally, or any earnings guidance previously released by the company," Vaso added.