CAEI Appoints ConnGame Founder as CEO
17173.com, 9/21/10
China Architectural Engineering (Nasdaq: CAEI) has announced that it appointed Alan Leung, founder of recently acquired online gaming subsidiary ConnGame, as CEO on September 13, while CAEI's CFO resigned, followed by two board members. Tang Jun, newly elected chairman of CAEI, has begun to replace CAEI's management with that of ConnGame, but has yet to publicly disclose the number of shares held by Alan Leung and his team.
CAEI's stock price has remained below USD 5 per share since H2 2008, and fell below USD 1 this year. The stock price rose to USD 0.99 with ConnGame's backdoor listing, only to fall back down afterward. Following ConnGame's backdoor listing, existing CAEI shareholders began to sell off their holdings. As of September 14, 6.39 mln shares had been sold at an average price of USD 0.80 per share for a total value of USD 5.12 mln.
The Nasdaq stock exchange previously warned CAEI that if it did not trade at over USD 1 for ten trading days between July 1 and December 28, the stock would be delisted.
Editor's Note: For more information on this topic, please see "Details Emerge Regarding ConnGame Backdoor Listing," MD 8/30/10 issue, and "China Architectural Engineering Acquires ConnGame," MD 8/24/10 issue.
Keywords: online gaming Alan Leung Tang Jun Internet Nasdaq listing ConnGame China Architectural Engineering
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