CHINA AUTO LOGISTICS INC. (NASDAQ:CALI) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 29, Tong Shiping resigned as a Director and Officer of China Auto Logistics Inc. (the “Company”). Mr. Shiping was the Chief Executive Officer, President and Chairman of the Board.
On June 29, Xinwei Wang resigned as a Director and Officer of the Company. Ms. Wang was the Chief Financial Officer, Treasurer, Vice President and a Director.
On June 30, Jun Yu resigned as a Director and Officer of the Company. Ms. Yu was the Senior Vice President and a Director.
The foregoing Directors and Officers of the Company resigned as a result of a police investigation (the “PRC Investigation”) initiated by certain employees of the Company in The People’s Republic of China alleging violations of data privacy and unlawful forfeiture of personal electronics and email accounts arising out of the requests of the Audit Committee and its legal advisor in connection with the internal investigation disclosed in a Current Report on Form 8-K filed on April 10, 2018. The Company has responded to the PRC Investigation, which it now believes is moving onto the legal advisor handling the internal investigation on behalf of the Audit Committee of the Board of Directors.
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About CHINA AUTO LOGISTICS INC. (NASDAQ:CALI)
China Auto Logistics Inc., formerly Fresh Ideas Media, Inc. is engaged in providing imported automobile sales and trading service, and a Web-based automobile sales and trading information platform to its customers. The Company operates through four segments: sales of automobiles, financing services, airport auto mall automotive services and other services. The Company conducts its sales operations of imported automobiles primarily through its subsidiaries, Tianjin Binhai Shisheng Trading Group Co., Ltd. and Tianjin Zhonghe Auto Sales Service Co., Ltd. (Zhonghe). Its financing services include letter of credit issuance services, purchase deposit financing, and import duty advance services. Zhonghe operates approximately two businesses, including selling used cars through Car King Tianjin, and leasing a portion of the Airport International Auto Mall. The Company’s other services include revenue generated from Web-based Advertising.