PR Newswire Asia, 4/09/12
Zhengzhou-based set-top box provider ZST Digital Networks (Nasdaq: ZSTN) today announced that its board of directors has decided to seek a voluntary delisting from the Nasdaq Global Market.
As previously disclosed in the company's current report on Form 8-K, filed with the US Securities and Exchange Commission on March 30, 2012, BDO China Dahua CPA Co., Ltd. ("BDO") informed ZST of its decision to resign as ZST's independent registered public accounting firm, effective March 26, 2012. In addition, BDO informed ZST that BDO can no longer support its opinion dated March 3, 2011 relating to its audit of ZST's consolidated financial statements for the year ended December 31, 2010 contained in its Form 10-K filed with the SEC on March 4, 2011. As a result, ZST anticipates that it will be unable to file its annual report on Form 10-K for the fiscal year ended December 31, 2011 on a timely basis in accordance with the Securities Exchange Act of 1934, as amended.
In view of ZST's inability to continue to comply with the Nasdaq's continued listing requirements set forth in Listing Rule 5250(c)(1) requiring filings to be made with the SEC on a timely basis, the company has notified The Nasdaq Stock Market of its intent to voluntarily delist its common stock from the Nasdaq GM. ZST intends to file a Form 25 with the SEC on or about April 16, 2012 and anticipates that the delisting of its common stock will become effective on or about April 26, 2012. ZST expects that its common stock will be eligible for trading on the over-the-counter market thereafter. No assurance, however, can be made that trading in ZST's common stock on the over-the-counter market will commence or be maintained. Following delisting, ZST will continue to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, and intends to continue to file all periodic and other reports with the SEC under applicable federal securities laws as required.