QKL STORES INC. FILES (8-K) Disclosing Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
(Edgar Glimpses Via Acquire Media NewsEdge) Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing
Rule or Standard; Transfer of Listing
On January 4, 2014, China time, QKL Stores Inc. (the "Company) received a letter
dated January 3, 2014 from the Nasdaq Stock Market LLC ("Nasdaq"). Nasdaq
indicated in its letter that as a result of the resignation of Mr. Chaoying Li
from the Company's Board of Directors, effective January 1, 2014, the Company no
longer complies with Nasdaq's independent director and audit committee
requirements as set forth in Listing Rule 5605, which requires that a majority
of the Company's board of directors be comprised of independent members and its
audit committee be comprised of three independent members.
Consistent with Listing Rules 5605(b)(1)(A) and 5605(c)(4), Nasdaq indicated
that it will provide the Company a cure period in order to regain compliance.
The Company has until the earlier of the Company's next annual shareholders'
meeting or January 1, 2015 to regain compliance. Alternatively, if the next
annual shareholders' meeting is held before June 30, 2014, then the Company must
evidence compliance no later than June 30, 2014. The Company must submit to
Nasdaq documentation, including biographies of any new directors, evidencing
compliance with the rules no later than this date. In the event the Company does
not regain compliance by this date, Nasdaq rules require its staff to provide
written notification to the Company that its securities will be delisted. At
that time, the Company may appeal the delisting determination to a Hearings
The Company is conducting a search for a new director who meets the requirements
of Nasdaq and is available for appointment to the Company's board of directors
and audit committee within the cure period allowed under the Listing Rules. The
Company fully expects to regain compliance prior to the end of the cure period.
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