Monster Digital Inc. has extended to Jan. 26 the closing of its reverse merger with a North Carolina biopharmaceutical company.
The Simi Valley developer of actions sports cameras and accessories was not able to close the deal with Innovate Biopharmaceuticals Inc. in time for the original Jan. 3 deadline due to final preparations for the closing taking more time than expected, according to the company.
Chief Executive David Clarke said Monster is committed to getting the reverse merger completed.
“We continue to work diligently and cooperatively with Innovate to close the transaction as soon as possible,” Clarke said in a prepared statement.
Innovate, in Raleigh, N.C., is a research biotech company that plans to use the public capital markets to finance development of its main pipeline drug to treat celiac disease.
Monster is also requesting Jan. 26 as its deadline for regaining compliance on the Nasdaq Capital Market for not meeting the exchange’s stockholder equity requirement. The company could not say if the Nasdaq Stock Market LLC Hearings Panel will grant the new deadline or not.
If the new deadline is not approved by the panel, Monster’s stock will be delisted.
Shares of Monster (MSDI) closed down about 3 cents, or more than 5 percent, to 57 cents on the Nasdaq.