BEIJING, May 30, 2013 /PRNewswire-FirstCall/--
Telestone Technologies Corporation (NASDAQ: TSTC) (the "Company"),
a leading supplier of local access network solutions for
communications networks in China,
today announced that it received a Staff Determination Letter (the
"Notice") from The NASDAQ Stock Market LLC ("NASDAQ") on
May 23, 2013, indicating that NASDAQ
has determined to suspend from trading and delist the Company's
common stock from the NASDAQ Stock Market, effective the open of
business on June 3, 2013.
As previously disclosed, the Company is not in compliance with
the continued listing requirements under NASDAQ Listing Rule
5250(c)(1) due to the Company's inability to timely file its annual
report on Form 10-K for the year ended December 31, 2012. On May
1, 2013, the Company filed a plan with NASDAQ to regain
compliance with continued listing requirements, however NASDAQ did
not approve the plan. In addition, the Company also failed to file
its quarterly report on Form 10-Q for the period ended March 31, 2013, which constitutes a separate
basis for delisting under NASDAQ Listing Rule 5250(c)(1). In the
Notice, NASDAQ also cited NASDAQ Listing Rule 5101, which affords
NASDAQ "broad discretionary authority over the initial and
continued listing of securities in NASDAQ." Specifically, the
Notice stated that the Staff of NASDAQ believes that the reasons
underlying the Company's filing delinquencies raise significant
public interest concerns under Listing Rule 5101. Based on these
factors, the Staff made the determination to delist the Company's
securities from The NASDAQ Stock Market.
The Company has determined not to appeal NASDAQ's determination.
As previously disclosed, the Company has not obtained records from
its Sichuan Ruideng subsidiary (the "Subsidiary") that are
necessary for the completion of the audit of the Company's
financials for the fiscal year ended December 31, 2012. Also, as disclosed in the
Company's Form 12b-25 filed May 16,
2013, to date, the prior owners of the Subsidiary, who are
also tasked with its management, have refused to deliver the
records to the Company headquarters. The Company doubts that the
potential remedial measures necessary to obtain such financial
records can be completed within 180 days, and, as such, the Company
feels the success of an appeal of the delisting determination would
be unlikely. Therefore, the Company will not appeal NASDAQ's
determination.
After the Company's common stock is delisted by NASDAQ, it may
trade on the OTC Markets Group Inc. (the "Pink Sheets") but only if
at least one market maker decides to quote the Company's common
stock. There can be no assurance that any market maker will decide
to quote the Company's common stock immediately following such
delisting or at all, and thus there can be no assurance that the
Company's common stock would be eligible to trade on the Pink
Sheets.
About Telestone Technologies Corporation
Telestone is a leader and innovator in wireless local-access
network technologies and solutions. The company has a global
presence, with 30 sales offices throughout China and a network of international branch
offices and sales agents. For more than 10 years, Telestone has
installed radio-frequency (RF)-based 1G and 2G systems throughout
China for its leading
telecommunications companies. After intensive research on the needs
of carriers in the 3G age, Telestone developed and commercialized
its proprietary third-generation local-access network technology,
Wireless Fiber-optic Distribution System (WFDS), which provides a
scalable, multi-access local access network solution for
China's three cellular protocols.
Telestone also offers services including project design,
manufacturing, installation, maintenance and after-sales support.
The Company has approximately 1,400 employees.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of Telestone Technologies Corporation and
its subsidiary companies. Forward looking statements can be
identified by the use of forward-looking terminology such as
"believes, expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties,
including all business uncertainties relating to product
development, marketing, concentration in a single customer, raw
material costs, market acceptance, future capital requirements,
competition in general and other factors that may cause actual
results to be materially different from those described herein as
anticipated, believed, estimated or expected. Certain of these
risks and uncertainties are or will be described in greater detail
in our filings with the Securities and Exchange Commission.
Telestone Technologies is under no obligation to (and expressly
disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such
state or jurisdiction.
SOURCE Telestone Technologies Corporation