PR Newswire Asia, 12/23/11
Xi'an-based mobile enterprise software provider Kingtone Wirelessinfo Solution Holding (Nasdaq: KONE) today announced that it has received a letter from the Nasdaq Stock Market indicating that, based on Kingtone's closing bid price for the last 30 consecutive business days, the company no longer meets the USD 1.00 minimum bid price requirement as set forth in Nasdaq Listing Rule 5550(a)(2). The Nasdaq letter has no immediate effect on the listing of Kingtone's American Depositary Shares ("ADSs") at this time.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Kingtone has been provided a grace period of 180 calendar days, or until June 18, 2012, to regain compliance by maintaining a minimum closing bid price of USD 1.00 per share for a minimum of 10 consecutive business days. Accordingly, if at any time before June 18, 2012, the bid price of Kingtone's ADSs closes at USD 1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify the company that it has regained compliance with the minimum bid price rule.
If Kingtone does not regain compliance with the minimum bid price rule by June 18, 2012, the company may receive an additional 180-day compliance period if it meets the market value of publicly held shares requirement for continued listing and all other initial listing standards for the Nasdaq Capital Market, except for the bid price requirement. In such instance, Kingtone will need to provide written notice of its intention to cure the deficiency during the second compliance period. Otherwise, Nasdaq will notify the company that its ADSs will be subject to delisting. In the event Kingtone receives notice that its ADSs are being delisted from the Nasdaq Capital Market, Nasdaq rules permit the company to appeal any delisting determination by the Nasdaq staff to a Nasdaq Hearings Panel.
Kingtone states that it intends to actively monitor the closing bid price of its ADSs between now and June 18, 2012 and will evaluate available options to resolve the deficiency and regain compliance with the minimum bid price rule.