CHINA AUTO LOGISTICS INC. (NASDAQ:CALI) Files An 8-K Other EventsItem 8.01 Other Events.
After receiving allegations of related party transactions from a shareholder of the Registrant, the Audit Committee deemed it advisable to initiate an investigation into such allegations (the “Investigation”). The Registrant is in the process of retaining independent counsel to assist with the Investigation and intends to cooperate fully with the Investigation.
As a result of the foregoing, the Registrant’s Form 10-K for the period ended December 31, 2017 (the “Form 10-K”) due to be filed on April 17, 2018 will be delayed. Once the Investigation is completed the Registrant plans to file the Form 10-K.
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.