Intends to Submit Compliance Plan to Nasdaq by June 11, 2018
TIANJIN, CHINA, June 01, 2018 (GLOBE NEWSWIRE) -- China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), a top seller in China of luxury imported automobiles and a leading provider of auto-related services, today reported on a Form 8-K that as a consequence of its inability to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2018, and the continued delinquency in filing its 2017 Annual Report on Form 10-K, the Company is not in compliance with Nasdaq listing rule 5250(c)(1), which requires timely filing of reports with the U.S. Securities and Exchange Commission for continued listing.
Under the Nasdaq rules, the Company has until June 11, 2018 to submit a plan to regain compliance with the Nasdaq rules and, if the plan is accepted by Nasdaq, then Nasdaq may grant an extension until October 15, 2018 for the Company to regain compliance. If Nasdaq does not accept the plan, the Company may appeal such decision to a Nasdaq Hearings Panel.
In a Form 8-K filed on April 10, 2018, the Company disclosed that the Audit Committee of the Board initiated an independent investigation which investigation is the reason for the Company’s inability to timely file its Form 10-K and Form 10-Q. The Company also previously disclosed that a material weakness was identified in its internal controls and procedures over identifying and reporting certain relationships and related transactions, and that the identified material weakness would impact its disclosures in the Form 10-K and be the subject of the independent investigation.
The Company intends to fully cooperate with the investigation and, once completed, file the Form 10-K and Form 10-Q as soon as possible thereafter. The Company also intends to submit a compliance plan to Nasdaq by June 11, 2018, including details on the investigation and its results, as well as specific steps that may be required to regain compliance with the Nasdaq rules.
About China Auto Logistics Inc.
China Auto Logistics Inc. is one of China's top sellers of imported luxury 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.