CHINA AUTO LOGISTICS INC. (NASDAQ:CALI) Files An 8-K Other EventsItem 8.01. Other Events.
As reported in a Current Report on Form 8-K filed on April 10, 2018, the Audit Committee of China Auto Logistics Inc. (the “Company”) initiated an investigation into certain allegations of related party transactions from a shareholder of the Company (the “Investigation”). The Audit Committee thereafter retained independent counsel (“Independent Counsel”) to assist with the Investigation. On July 30, 2018, Independent Counsel withdrew from its representation of the Audit Committee with respect to the Investigation. The Company does not believe that the Investigation will be completed.
Following the resignation of certain executive officers and directors of the Company, the board of directors of the Company (the “Board”), on August 21, 2018, authorized and approved the reduction of the number of directors from seven to three. The remaining three directors are: Lv Fuqi, Yang Lili and Bai Shaohua.
As reported in a Current Report on Form 8-K filed on July 27, 2018, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC, which stated, in part, that a Form 25-NSE will be filed with the Securities and Exchange Commission (the “SEC”), which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market. On August 21, 2018 the Board authorized the Company to file a Certification and Notice of Termination of Registration Under Section 12(g) of the Securities Exchange Act of 1934 on Form 15 with the SEC ten days after the filing of the Form 25-NSE. This will terminate the Company’s reporting obligations under the Securities Exchange Act of 1934.
On August 21, 2018 the Board authorized and approved both the Company and the Company’s wholly-owned subsidiary Tianjin Seashore New District Shisheng Business Trading Group Co. Ltd., a company established under the laws of the People’s Republic of China, to seek bankruptcy protection and undergo reorganization, subject to advice of both U.S. and PRC counsel.
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.