ZHEJIANG, China, Oct. 13, 2011 /PRNewswire-Asia/ -- 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 the Company received two
letters, dated October 11, 2011 and
October 12, 2011, from The Nasdaq
Stock Market stating that for the previous 30 consecutive business
days, the bid price of the Company's ordinary shares closed below
the minimum $1.00 per share and the
market value of the Company's publicly held ordinary shares
("MVPHS") was below the minimum of $5,000,000, both requirements for continued
listing on the Nasdaq Global Market pursuant to Nasdaq Marketplace
Rules 5450(a)(1) (the "Minimum Bid Price Rule") and 5450(b)(1) (the
"MVPHS Rule"), respectively. The Nasdaq letters have no immediate
effect on the listing of the Company's ordinary shares.
In accordance with Nasdaq Marketplace Rules 5810(c)(3)(A) and
5810(c)(3)(D), the Company has been provided a grace period of 180
calendar days, or until April 9, 2012, to regain compliance by
maintaining a closing bid price of at least $1.00 per share and a
closing MVPHS of $5,000,000 or more for a minimum of ten
consecutive business days. If at any time before April 9, 2012, the
bid price of the Company's ordinary shares closes at $1.00 per
share or more and the Company's MVPHS closes at $5,000,000 or more
for a minimum of ten consecutive business days, Nasdaq will notify
the Company that it has achieved compliance with the Minimum Bid
Price Rule and the MVPHS Rule.
If the Company does not regain compliance with the Minimum Bid
Price Rule or the MVPHS Rule by April 9,
2012, Nasdaq will notify the Company that its ordinary
shares will be delisted from The Nasdaq Global Market. However, the
Company may apply to transfer the listing of its ordinary shares
from The Nasdaq Global Market to The Nasdaq Capital Market by
April 9, 2012, provided that the
Company satisfies the requirements for initial listing set forth in
Marketplace Rule 5505 (except for the bid price requirement). If
the Company's application for transfer is approved, the Company
would have an additional 180 calendar days to comply with the
Minimum Bid Price Rule and the MVPHS Rule in order to remain on The
Nasdaq Capital Market.
The Company intends to actively monitor the closing bid price of
its ordinary shares between now and April 9,
2012 and will evaluate available options to resolve the
deficiency and regain compliance with the Minimum Bid Price Rule
and the MVPHS Rule.
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.
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 registration statement on Form F-1, 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 Evergreen 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 February 1 2011. 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.
Contacts:
Company:
Lizhan Environmental Corporation
Silvia Liu, Investor Relations
Manager
Email: ir@lezncorp.com
Phone: +011-86-573-8862-268
Investor Relations:
MZ North America
Ted Haberfield, President
Email: thaberfield@hcinternational.net
Web: www.mz-ir.com
Phone: +1-760-755-2716
SOURCE Lizhan Environmental Corporation