HONG KONG, Feb. 20, 2015 /PRNewswire/ -- On February 10, 2015, SGOCO Group, Ltd., (the
"Company") received a letter (the "Notification Letter") from The
NASDAQ Stock Market LLC ("Nasdaq") notifying the Company that it is
not in compliance with the minimum bid price requirement set forth
in Nasdaq Rules for continued listing on The Nasdaq Capital Market.
Nasdaq Listing Rule 5550(a)(2) requires listed securities to
maintain a minimum bid price of $1.00
per share, and Listing Rule 5810(c)(3)(A) provides that a failure
to meet the minimum bid price requirement exists if the deficiency
continues for a period of 30 consecutive business days. Based on
the closing bid price of the Company's common stock for the 30
consecutive business days from December 22,
2014 to February 9, 2015, the
Company no longer meets the minimum bid price requirement.
The Notification Letter does not impact the Company's listing on
The Nasdaq Capital Market at this time. In accordance with Nasdaq
Listing Rule 5810(c)(3)(A), the Company has been provided 180
calendar days, or until August 10, 2015, to regain compliance with
Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's
common stock must have a closing bid price of at least $1.00 for a
minimum of 10 consecutive business days. In the event the Company
does not regain compliance by August 10, 2015, the Company may be
eligible for additional time to regain compliance.
The Company intends to seek stockholder approval of amendments
to the Company's Amended and Restated Articles of Association to
effect a reverse stock split. If the proposal is approved by the
Company's stockholders, it will be implemented by the Company's
board of directors if the board of directors determines that a
reverse stock split is in the best interests of the Company and its
stockholders. There can be no assurance that the proposal will be
approved by stockholders, or that the proposal, if approved, would
be sufficient to permit the Company to regain compliance with the
minimum bid price requirement.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is focused on product design, brand
development and distribution in the Chinese display market,
including computer monitors, All-In-One ("AIO") and Parts-In-One
("PIO") computers and application specific products. SGOCO sells
its products and services in the China market and abroad. For more information
about SGOCO, please visit our investor relations website
http://www.sgocogroup.com.
For investor and media inquiries, please contact:
SGOCO Group, Ltd.
Johnson
Lau
Chief Financial Officer
Tel: +852 2501 0128/9422 9258
Email: johnson@sgoco.com
Safe Harbor and Informational Statement
This announcement contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein and those preceded by or
that include the words "believe," "expect," "anticipate," "future,"
"will," "intend," "plan," "estimate" or similar expressions, are
"forward-looking statements". Forward-looking statements in this
release include, without limitation, the effectiveness of the
Company's multiple-brand, multiple channel strategy and the
transitioning of its product development and sales focus and to a
"light-asset" model, Although the Company's management believes
that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These
forward looking statements involve a number of risks and
uncertainties, which could cause the Company's future results to
differ materially from those anticipated. These forward-looking
statements can change as a result of many possible events or
factors not all of which are known to the Company, which may
include, without limitation, requirements or changes adversely
affecting the LCD and LED market in China; fluctuations in customer demand for LCD
and LED products generally; our success in promoting our brand of
LCD and LED products in China and
elsewhere; our ability to have effective internal control over
financial reporting; our success in designing and distributing
products under brands licensed from others; management of sales
trend and client mix; possibility of securing loans and other
financing without efficient fixed assets as collaterals; changes in
government policy in China; the
fluctuations and competition in sales and sale prices of LCD and
LED products in China;
China's overall economic
conditions and local market economic conditions; our ability to
expand through strategic acquisitions and establishment of new
locations; compliance with government regulations; legislation or
regulatory environments; geopolitical events, and other events
and/or risks outlined in SGOCO's filings with the U.S. Securities
and Exchange Commission, including its annual report on Form 20-F
and other filings. All information provided in this press release
and in the attachments is as of the date of the issuance, and SGOCO
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
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SOURCE SGOCO Group, Ltd.