NEW YORK--(BUSINESS WIRE)--April 11, 2008--Callisto
Pharmaceuticals, Inc. (AMEX: KAL), announced today that on April 7,
2008, it received notice from the American Stock Exchange indicating
that AMEX intends to strike the Company's common stock from listing on
AMEX by filing a delisting application with the Securities and
Exchange Commission. In its letter, AMEX stated that it has determined
that the Company has failed to comply with continued listing standards
set forth in Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the
AMEX Company Guide, respectively, which state, in relevant part, that
AMEX will normally consider suspending dealings in, or removing from
the list, securities of a company which (a) has stockholders' equity
of less than $2,000,000 if such company has sustained losses from
continuing operations and/or net losses in two of its three most
recent fiscal years; (b) has stockholders' equity of less than
$4,000,000 if such company has sustained losses from continuing
operations and/or net losses in three of its four most recent fiscal
years; or (c) has stockholders' equity of less than $6,000,000 if such
company has sustained losses from continuing operations and/or net
losses in its five most recent fiscal years, respectively.
The AMEX rules provide for an appeal of the above decision which
the Company has made by requesting a hearing in accordance with
appropriate procedures as outlined by the AMEX Company Guide. The
Company's common stock will continue to trade on the AMEX during the
appeal process. If unsuccessful on appeal, the Company intends to
continue to trade on the Over-the-Counter Bulletin Board.
Callisto also announced today that the audit report of BDO
Seidman, LLP, contained in its December 31, 2007 financial statements
included in Callisto's Form 10-K filed on March 28, 2008, contained a
going-concern qualification. American Stock Exchange rules require
Amex-listed companies to publicly announce whenever a Form 10-K
includes an audit report containing a going-concern qualification.
About Callisto Pharmaceuticals, Inc.
Callisto is a biopharmaceutical company focused on the development
of new drugs to treat various forms of gastrointestinal diseases and
cancer. Callisto's drug candidates include SP-304, a proprietary drug
for gastrointestinal disorders that is currently being developed by
its wholly-owned subsidiary, Synergy Pharmaceuticals, as well as two
anti-cancer agents. Synergy's proprietary drug SP-304 (Guanilib) is
planned to begin clinical development in 2Q2008 for gastro-intestinal
disorders. SP-304 is a synthetic analog of the human gastrointestinal
hormone uroguanylin, and acts by activating the guanylate cyclase C
(GC-C) receptor on epithelial cells of the colon. The Company's lead
drug in the clinic, Atiprimod, is presently in a Phase II clinical
trial in advanced carcinoid cancer, a neuroendocrine tumor, and in a
Phase II extension trial in advanced carcinoid cancer patients.
Callisto's second cancer drug in the clinic, L-Annamycin, is currently
in a Phase I/II clinical trial in adult relapsed or refractory acute
lymphocytic leukemia, and in a Phase I clinical trial in children and
young adults with refractory or relapsed acute lymphocytic leukemia or
acute myelogenous leukemia. Callisto has exclusive worldwide licenses
from Genzyme Inc. and M.D. Anderson Cancer Center to develop,
manufacture, use and sell Atiprimod and L-Annamycin, respectively.
Callisto is also listed on the Frankfurt Stock Exchange under the
ticker symbol CA4. More information is available at
Web site: http://www.callistopharma.com
CONTACT: Callisto Pharmaceuticals, Inc.
Gary S. Jacob, Ph.D.
CEO, Callisto Pharmaceuticals, Inc.,
Tony Russo, +1-212-845-4251
Steve Suriano, +1-212-845-4235
SOURCE: Callisto Pharmaceuticals, Inc.