NEW YORK, May 9, 2012 /PRNewswire/ -- Gushan Environmental
Energy Limited ("Gushan" or the "Company"; NYSE: GU), a producer of
biodiesel and a manufacturer of copper products in China, today announced that on May 1, 2012, it received a letter from the New
York Stock Exchange ("NYSE") notifying the Company that it was not
in compliance with one of the NYSE's standards for continued
listing of the Company's American depositary shares ("ADSs") on the
exchange. Specifically, the NYSE indicated that it considers the
Company to be "below criteria" because, as of December 31, 2011, its average global market
capitalization over a consecutive 30 trading-day period was less
than $50 million and, at the same
time, its total stockholders' equity was less than $50 million. On April 27, 2012, the Company reported that as of
December 31, 2011, its total
shareholders' equity attributable to the Company was approximately
$36.2 million. As of
December 31, 2011, the Company's
global market capitalization over a consecutive 30 trading-day
period was $27.5 million.
Under NYSE continued listing rules, the Company has 90 days from
the receipt of the letter to submit a plan advising the NYSE of
definitive action the Company has taken, or is taking, that would
bring it into conformity with the applicable standards within 18
months of receipt of the letter. If the NYSE staff determines that
the Company has not made a reasonable demonstration of an ability
to come into conformity with the applicable standards within 18
months, the NYSE staff will promptly initiate suspension and
delisting procedures. Otherwise, if the NYSE staff accepts the
plan, the Company will be subject to semi-annual review by the NYSE
staff for compliance with this plan until either the Company is
able to demonstrate that it has returned to compliance for a period
of two consecutive quarters or the expiration of the 18 month
period. The NYSE staff will promptly initiate suspension and
delisting procedures if the Company fails to meet the continued
listing standards at the end of the 18 month period. The Company
currently intends to submit such a plan and is exploring
alternatives for curing the deficiency and regaining compliance
with the NYSE's continued listing standards.
The Company's business operations and Securities and Exchange
Commission reporting requirements are unaffected by this
letter. The Company's ADSs will remain listed on the NYSE
under the symbol GU but will be assigned a ".BC" indicator by the
NYSE to signify that the Company is currently not in compliance
with the NYSE's continued listing standards.
About Gushan Environmental Energy Limited
Gushan produces biodiesel, a renewable, clean-burning and
biodegradable fuel and a raw material used to produce chemical
products, primarily from used cooking oil, and by-products from
biodiesel production, including glycerine and plant asphalt. Gushan
sells biodiesel directly to users, such as marine vessel operators
and chemical factories, as well as to petroleum wholesalers and
individual retail gas stations. The Company has seven production
facilities, located in the Sichuan, Hebei, Fujian
and Hunan provinces and in
Beijing, Shanghai and Chongqing, with a combined annual production
capacity of 490,000 tons. Gushan's Sichuan production facility is currently in
operation. Gushan also operates a copper products business in
China which manufactures copper
rods, copper wires, copper granules and copper plates primarily
from recycled copper. Currently, the copper products business has
two plants, with a daily production capacity of approximately 210
tons of recycled copper products.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by words such as "will," "may," "expect,"
"anticipate," "aim," "target," "intend," "plan," "believe,"
"estimate," "potential," "continue," and other similar statements.
Statements other than statements of historical facts in this
announcement are forward-looking statements, including but not
limited to, the Company's expectations regarding the expansion of
its production capacities, its future business development, and its
beliefs regarding its production output. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about the Company and the industry. Important risks and
uncertainties that could cause the Company's actual results to be
materially different from expectations include but are not limited
to the effect of any applicable government policy, law or
regulation, of natural disasters, and of intensifying competition
in the biodiesel and alternative energy industries, the
availability of suitable raw materials to the Company, and the
risks set forth in the Company's filings with the U.S. Securities
and Exchange Commission ("SEC"), including on Form 20-F. The
Company undertakes no obligation to update forward-looking
statements, except as may be required by law. Although the Company
believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that its
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results.
For
further information, please contact:
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US
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Asia
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Hill &
Knowlton (New York)
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Hill &
Knowlton (Hong Kong)
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Tel: (1)
212 885 0682
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Tel: (852)
2894 6204
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Email:
elizabeth.cheek@hillandknowlton.com
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Email:
rico.ngai@hillandknowlton.com.hk
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SOURCE Gushan Environmental Energy Limited