KaloBios To Trade On 'Grey Markets'

KaloBios Pharmaceuticals Inc KBIO is likely to trade on 'Grey Market' and not one of the OTC Markets, since it has been halted, according to an OTC Markets Spokesperson. The company reported that on December 18, 2015, it received a letter from the Nasdaq Listing Qualification Staff advising the Firm that Nasdaq has determined to delist the Firm's securities pursuant to its discretionary authority under Nasdaq Listing Rule 5101. KaloBios commented on Thursday that it has not determined if it would appeal the Nasdaq delisting. The pharmaceutical firm has until Monday to appeal. The letter cited numerous reasons for their decision, including the arrest of Martin Shkreli, the firm's controlling shareholder, former Chairman and former Chief Executive Officer for allegations of securities fraud. If KaloBios decides not to appeal, the stock would be suspended from trading on Nasdaq at the opening of business on December 30. Prosecutors in Brooklyn have since charged Shkreli with illegally taking the biotechnology firm Retrophin Inc RTRX stock, to pay off debts from unrelated business ventures. For traders, there has been a short interest steadily increasing on KaloBios stock in the past few weeks which has more than doubled during the company's past reporting period. The biotech stock has trended lower for over two years, Shares of KaloBios Pharmaceuticals have been swinging with the recent news. The company's stock price remains the same at $23.59 in Thursday's trading session. Traders will be waiting with open arms once trading resumes again. Prior to the stock swinging last November, Shkreli became the company's largest shareholder and CEO. KaloBios added 1,135 percent during the quarter, however could reach near single-digit once trading resumes. KaloBios return on equity was -157.20 percent. The company's debt to equity ratio was 0.80 percent.