ZHEJIANG, China, Oct. 5, 2012 (GLOBE NEWSWIRE) -- Lizhan Environmental Corporation ("Lizhan" or the "Company") (Nasdaq:LZEN), one of China's leading manufacturers of eco-friendly fabrics made from patented technologies, announced today that it has notified the NASDAQ Stock Market ("NASDAQ") of its intention to voluntarily delist from NASDAQ.
On April 12, 2012, the Company received a notification from the NASDAQ stating Lizhan had been given a period of 180 calendar days, or until October 15, 2012, to regain compliance with NASDAQ's Listing Rule 5500(a)(2), which requires that the bid price of a common share listed on The NASDAQ Capital Market close at a minimum of $1.00 per share.
The decision to voluntarily delist from NASDAQ was taken following the Company's Board of Directors detailed review of numerous factors, including among other things its inability to meet the minimum $1.00 price per share requirement, the applicable NASDAQ rules and regulations, Rule 12d2-2(c) of the Securities Exchange Act of 1934, as amended, the significant compliance obligations and restrictions that result from the maintenance of the listing on NASDAQ and the Company's current financial condition. Based on these factors, the Company no longer sees sufficient value in maintaining its listing on NASDAQ.
The Company intends to file a Form 25 with the U.S. Securities Exchange Commission on October 15, 2012 to commence the NASDAQ delisting process. It is expected that the delisting will take effect as of the close of trading in New York on October 25, 2012. Following delisting, Lizhan's common stock will no longer trade on the NASDAQ Capital Market under the symbol "LZEN." The Company's common stock will continue to be traded on the OTC Pink Sheets. Additionally, the Company will seek to commence trading on the OTCQB or OTCQX as soon as practicable. However, there can be no assurance that a market for the Company's shares will develop.
About Lizhan Environmental Corporation
Lizhan Environmental Corporation is one of China's leading manufacturers of eco-friendly fabrics whose products are developed with patented technology that regenerates collagen fiber from leftover cuttings, pieces and trimmings of genuine leather. The Company's products are mainly used in furniture, garments and other consumer applications. For more information about Lizhan Environmental Corporation, please visit www.lzencorp.com.
Safe Harbor Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on 20F, as amended. Some of risks inherent in an investment in our company include, but are not limited to, our limited operation history, our need to maintain sufficient levels of liquidity and working capitals, the potential need to reduce our expansion plans, price inflation in the PRC, difficulties in developing and selling our new Colgre Products, seasonal patterns in our business, protection of our intellectual property and the risk of infringing the intellectual property of others, customer decisions to discontinue purchasing our products, and restrictions imposed by Chinese regulations, including every policies. All information provided in this press release is as of March 30, 2012. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
CONTACT: Company: Lizhan Environmental Corporation Eileen Liu, Investor Relations Manager Email: firstname.lastname@example.org Phone: +011-86-573-8862-268 Investor Relations: MZ North America Ted Haberfield, President Email: email@example.com Phone: +1-760-755-2716Source:Lizhan Environmental Corporation