BEIJING, June 12, 2015 /PRNewswire/ -- Fuwei Films
(Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the
"Company"), a manufacturer and distributor of high-quality BOPET
plastic films in China, today
announced that the Company received a letter from the Nasdaq Stock
Market ("NASDAQ") on June 9, 2015
stating that while the Company had not regained compliance with the
NASDAQ Listing Rule 5550(a)(1) (the "Bid Price Rule") until
June 8, 2015, it was eligible for an
additional 180-day grace period, until December 7, 2015 (the "Expiration Date"), to
regain compliance with the Bid Price Rule.
On December 8, 2014, the Company
received a letter from NASDAQ notifying it of its failure to
maintain a minimum closing bid price of $1.00 over the then preceding 30 consecutive
trading days for its ordinary shares as required by the Bid Price
Rule. The letter stated that the Company had until June 8, 2015 to demonstrate compliance by
maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading
days.
NASDAQ's determination was based on the Company having met the
continued listing requirement for Market Value of Publicly Held
Shares ("MVPHS") and all other applicable requirements for initial
listing on the NASDAQ Capital Market, with the exception of the Bid
Price Rule, and on the Company's written notice to NASDAQ of its
intention to cure the deficiency during the second compliance
period by effecting a reverse stock split, if necessary. If at any
time during this additional time period the closing bid price of
the Company's security is at least $1
per share for a minimum of 10 consecutive business days, NASDAQ
will provide written confirmation of compliance and this matter
will be closed. If compliance cannot be demonstrated by
December 7, 2015, Staff will provide
written notification that the Company's ordinary shares will be
delisted. At that time, the Company may appeal NASDAQ's
determination to delist its ordinary shares to a NASDAQ Hearings
Panel. The Company will monitor the closing bid price of its
ordinary shares and will consider various possible options, and, if
necessary, it intends to effect a reverse stock split, to regain
compliance by the Expiration Date.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary, Fuwei Films (Shandong)
Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures
and distributes high-quality plastic films using the biaxial
oriented stretch technique, otherwise known as BOPET film
(biaxially oriented polyethylene terephthalate). Fuwei's BOPET film
is widely used to package food, medicine, cosmetics, tobacco, and
alcohol, as well as in the imaging, electronics, and magnetic
products industries.
Safe Harbor
This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are subject to risks. Risk factors that could contribute to
such differences include those matters more fully disclosed in the
Company's reports filed with the U.S. Securities and Exchange
Commission which, among other things, include significant
competition in the BOPET film industry, especially the significant
oversupply of BOPET films resulting from the rapid growth of the
Chinese BOPET industry capacity, changes in the international
market and trade barriers, especially the adverse impact of the
antidumping investigation and imposition of an anti-dumping duty on
imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain main importing
countries; fluctuations of RMB exchange rate, the reduce in demand
for the Company's products or the loss of main customers which may
result in the decrease of sales, and negatively influencing the
Company's financial performance, uncertainty as to the future
profitability, uncertainty as to the Company's ability to
successfully obtain additional funds to meet the working capital
needs of the new BOPET production line, uncertainty as to the
Company's ability to continuously develop new BOPET film products
to be produced by the third production line and keep up with
changes in BOPET film technology, risks associated with possible
defects and errors in its products including complaints and claims
from clients, uncertainty as to its ability to protect and enforce
its intellectual property rights, uncertainty as to its ability to
attract and retain qualified executives and personnel, and
uncertainty in acquiring raw materials on time and on acceptable
terms, particularly in light of the volatility in the prices of
petroleum products in recent years, instability of power and energy
supply, and the uncertainty regarding the future operation of the
Company in connection with the changes in the labor law in
China, the measures taken by the
Chinese government to save energy and reduce emissions, and the
complaints from nearby residents and local government about the
noise caused by our production as well as the uncertainty of the
impact of major shareholder transfer that have substantial
influence over the Company and the Company's business operation
including possible overlap of our BOPET products, customers and
market orientation with an BOPET film manufacturer, which is
controlled by the same individual who has control over the shares
of our major shareholder. The forward-looking information provided
herein represents the Company's estimates as of the date of the
press release, and subsequent events and developments may cause the
Company's estimates to change. The Company specifically disclaims
any obligation to update the forward-looking information in the
future. Therefore, this forward-looking information should not be
relied upon as representing the Company's estimates of its future
financial performance as of any date subsequent to the date of this
press release. Actual results of our operations may differ
materially from information contained in the forward-looking
statements as a result of the risk factors.
For more information, please contact:
In China:
Ms Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com
In the U.S.:
Ms. Vivian Chen
Investor Relations
Grayling
Phone: +1-646-284-9427
Email: vivian.chen@grayling.com
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SOURCE Fuwei Films (Holdings) Co., Ltd.