BEIJING, May 26, 2016 /PRNewswire/ -- Fuwei Films
(Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the
"Company"), a manufacturer and distributor of high-quality BOPET
plastic films in China, today
announced that the Company received a letter from the Nasdaq Stock
Market ("NASDAQ") on May 24, 2016
stating that while the Company had not regained compliance with the
NASDAQ Listing Rule 5550(a)(1) (the "Bid Price Rule") as of
May 23, 2016, the Company is eligible
for an additional 180-day grace period to regain compliance with
the Bid Price Rule, which expires November
21, 2016 (the "Expiration Date").
On November 25, 2015, the Company
received a letter from NASDAQ notifying it of its failure to
maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive
trading days for its ordinary shares as required by the Bid Price
Rule. The letter stated that the Company had until May 23, 2016 to demonstrate compliance by
maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading
days.
NASDAQ's determination was based on the Company having met the
continued listing requirement for Market Value of Publicly Held
Shares and all other applicable requirements for initial listing on
the NASDAQ Capital Market, with the exception of the Bid Price
Rule, and on the Company's written notice to NASDAQ of its
intention to cure the deficiency during the second compliance
period by effecting a reverse stock split, if necessary. If at any
time during this additional time period the closing bid price of
the Company's security is at least $1.00 per share for a minimum of 10 consecutive
business days, NASDAQ will provide written confirmation of
compliance and this matter will be closed. If compliance cannot be
demonstrated by November 21, 2016,
Staff will provide written notification that the Company's ordinary
shares will be delisted. At that time, the Company may appeal
NASDAQ's determination to delist its ordinary shares to a NASDAQ
Hearings Panel. The Company will monitor the closing bid price of
its ordinary shares and will consider various possible options,
including if necessary, it intentions to effect a reverse stock
split, to regain compliance by the Expiration Date.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary, Fuwei Films (Shandong)
Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures
and distributes high-quality plastic films using the biaxial
oriented stretch technique, otherwise known as BOPET film
(biaxially oriented polyethylene terephthalate). Fuwei's BOPET film
is widely used to package food, medicine, cosmetics, tobacco, and
alcohol, as well as in the imaging, electronics, and magnetic
products industries.
Safe Harbor
This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are subject to risks. Risk factors that could contribute to
such differences include those matters more fully disclosed in the
Company's reports filed with the U.S. Securities and Exchange
Commission which, among other things, include significant
competition in the BOPET film industry, especially the significant
oversupply of BOPET films resulting from the rapid growth of the
Chinese BOPET industry capacity, changes in the international
market and trade barriers, especially the adverse impact of the
antidumping investigation and imposition of an anti-dumping duty on
imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain main importing
countries; fluctuations of RMB exchange rate, the reduce in demand
for the Company's products or the loss of main customers which may
result in the decrease of sales, and negatively influencing the
Company's financial performance, uncertainty as to the future
profitability, uncertainty as to the Company's ability to
successfully operate its third BOPET production line, uncertainty
as to the Company's ability to continuously develop new BOPET film
products to be produced by the third production line and keep up
with changes in BOPET film technology, risks associated with
possible defects and errors in its products including complaints
and claims from clients, uncertainty as to its ability to protect
and enforce its intellectual property rights, uncertainty as to its
ability to attract and retain qualified executives and personnel,
and uncertainty in acquiring raw materials on time and on
acceptable terms, particularly in light of the volatility in the
prices of petroleum products in recent years, instability of power
and energy supply, and the uncertainty regarding the future
operation of the Company in connection with the changes in the
labor law in China, the measures
taken by the Chinese government to save energy and reduce
emissions, and the complaints from nearby residents and local
government about the noise caused by our production as well as the
uncertainty of the impact of major shareholder transfer that have
substantial influence over the Company and the Company's business
operation including possible overlap of our BOPET products,
customers and market orientation with an BOPET film manufacturer,
which is controlled by the same individual who has control over the
shares of our major shareholder. The forward-looking information
provided herein represents the Company's estimates as of the date
of the press release, and subsequent events and developments may
cause the Company's estimates to change. The Company specifically
disclaims any obligation to update the forward-looking information
in the future. Therefore, this forward-looking information should
not be relied upon as representing the Company's estimates of its
future financial performance as of any date subsequent to the date
of this press release. Actual results of our operations may differ
materially from information contained in the forward-looking
statements as a result of the risk factors.
For more information, please contact:
In China:
Ms Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com
In the U.S.:
Ms. Vivian Chen
Investor Relations
Grayling
Phone: +1-646-284-9427
Email: vivian.chen@grayling.com
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SOURCE Fuwei Films (Holdings) Co., Ltd.