CHINA AUTO LOGISTICS INC. (NASDAQ:CALI) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of ListingItem 3.01
On May 29, 2018, China Auto Logistics Inc. (the “Company”) received notification from the Listing Qualifications Department of The Nasdaq Stock Market, Inc. (“Nasdaq”) that, as a result of the Company’s inability to file its Quarterly Report on Form 10-Q for the period ended March 31, 2018 (the “Form 10-Q”) and, as previously disclosed, its Annual Report on Form 10-K for the period ended December 31, 2017 (the “Form 10-K”) by the expiration of the applicable extension periods under Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended, the Company does not comply with the timely filing requirements for continued listing under Rule 5250(c)(1) of the Nasdaq Listing Rules (the “Rules”).
As previously disclosed in a Current Report on Form 8-K filed on April 13, 2018, the Company has until June 11, 2018, to submit a plan to regain compliance with the Rules (a “Plan”) and, if the Plan is accepted by Nasdaq, then Nasdaq may grant an extension until October 15, 2018 for the Company to regain compliance. If Nasdaq does not accept the Plan, then the Company may appeal such decision to a Nasdaq Hearings Panel.
As disclosed in a Current Report on Form 8-K filed on April 10, 2018, the Audit Committee of the Company’s Board of Directors has initiated an independent investigation, which investigation is the reason for the Company’s inability to timely file its Form 10-K and Form 10-Q. The Company intends to fully cooperate with the investigation and, once completed, file the Form 10-K and the Form 10-Q as soon as practicable thereafter. The Company also intends to submit a Plan to Nasdaq within the time period set forth above, including details on the investigation and its results, and take any other steps necessary to regain compliance with the Rules.
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.