TIANJIN, CHINA, July 30, 2018 (GLOBE NEWSWIRE) -- China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), a seller in China of imported automobiles and a provider of auto-related services, today announced it received notification that the Company’s securities will be delisted from The Nasdaq Stock Market as of August 1, 2018.
As reported in a Current Report on Form 8-K filed on June 1, 2018, the Company received notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) that due to the Company’s inability to timely file its Quarterly Report for the quarter ended March 31, 2018 on Form 10-Q, as well as its Annual Report for the year ended December 31, 2017 on Form 10-K, the Company was not in compliance with Listing Rule 5250(c)(1) of the Nasdaq Listing Rules.
As reported in a Current Report on Form 8-K filed on June 11, 2018, the Company submitted a plan to Nasdaq providing details on how the Company intended to regain compliance with the continued listing requirements of Listing Rule 5250(c)(1).
As reported in a Current Report on Form 8-K filed on July 17, 2018, certain executive officers and directors of the Company resigned on June 29, 2018 (the “Resignations”) as a result of a police investigation in The People’s Republic of China (the “PRC Investigation”), which arose as a result of an internal investigation being conducted by the Company’s Audit Committee (the “Internal Investigation”).
On July 17, 2018, the Company received a letter from Nasdaq pursuant to Listing Rule 5250(a) requesting additional information from the Company relating to the Resignations, the PRC Investigation and the Internal Investigation. The Company did not provide its response to Nasdaq by the requested July 20, 2018 deadline.
On July 24, 2018, the Company received a further letter from Nasdaq, which stated that, given the foregoing, Nasdaq concluded that the Company did not provide a definitive plan evidencing the Company’s ability to achieve compliance with Listing Rule 5250(c)(1). The letter stated that the Company has not provided public disclosure regarding its current financial status or the timing for the completion of the Internal Investigation and, as such, prospective and current investors do not have information they need to make an investment decision in the securities of the Company. The letter further noted the Company’s failure to respond to Nasdaq’s request for information pursuant to Listing Rule 5250(a) and that therefore Nasdaq does not have information necessary to evaluate the Company’s suitability for continued listing.
Nasdaq therefore determined that the Company’s securities will be delisted from The Nasdaq Stock Market.
The Company does not plan to request an appeal of Nasdaq’s foregoing determination. Accordingly, trading of the Company’s common stock will be suspended at the opening of business on August 1, 2018, and a Form 25-NSE will be filed with the SEC, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.
About China Auto Logistics Inc.
China Auto Logistics Inc. is one of China's sellers of imported vehicles. It also provides short term financing services.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission. We do not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.