Shiner International approaches Nasdaq delisting
The Nasdaq Stock Market issued the ultimatum in the form of a letter to Shiner, which supplies a wide variety of packaging for food manufacturers, on August 28. That followed two previous written warnings.
Shiner has until 4pm Eastern Time to file the appeal. If it fails to do so, its common stock will be delisted at the opening of business on September 6. In addition, a form 25-NSE will be filed with the Securities and Exchange Commission, removing the company’s securities from Nasdaq listing and registration.
The situation has come about as a result of the poor share performance of Shiner. On September 1, 2011, it was notified by the Nasdaq that for 30 consecutive days the bid price of its common stock closed below $1 per share, breaching the Nasdaq’s terms for continued listing. Shiner was given until February 28 to regain compliance.
Period of grace
When that deadline had passed it was given an additional period of grace, until August 28, to boost share price performance. It proposed to cut the number of its shares in order to increase their value among other tactics designed to help its performance recover. Unfortunately, it failed to meet the August deadline.
Shiner said it was “in the process of determining whether it will appeal” as FoodProductionDaily was being published. It has already confirmed that it would keep trading on OTC Bulletin Board even if it was delisted.
Speaking to FoodProductionDaily previously, the company said: “Delisting would be significant because we can reach the capital markets through NASDAQ but something we believe we could survive .”
The firm claimed the plunge in its share price had been fuelled by a crisis of confidence in US-listed China stocks from investors concerned about accounting scandals involving them. Shiner stressed it had itself not been affected by such scandals. It also claimed investor confidence was returning to the market.
Shiner International is based in Haikou, China and is engaged in the research, development, manufacture and sale of flexible packaging material and advanced film. Products include coated packaging film, shrink wrap film, common packaging film, anti-counterfeit laser holographic film and colour printed packaging.
