SHENZHEN, China, May 31, 2011 /PRNewswire-Asia-FirstCall/ -- China Electric Motor, Inc. (Nasdaq: CELM), a Delaware corporation and China-based company that engages in the design, production, marketing and sale of micro motor products, today announced that it has received a notification letter (the "New Nasdaq Letter") dated May 24, 2011 from the Nasdaq Stock Market ("Nasdaq") indicating that the Company had failed to file its Form 10-Q for the quarterly period ended March 31, 2011 with the SEC, which was due by May 16, 2011, and this matter serves as an additional basis for delisting the Company's securities from Nasdaq.
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As previously announced, on April 6, 2011, Nasdaq notified the Company that it did not comply with Nasdaq's filing requirements for continued inclusion set forth in Listing Rule 5250(c)(1), due to its failure to timely file its Form 10-K for the fiscal year ended December 31, 2010 with the SEC and Nasdaq. Subsequently, on May 17, 2011, Nasdaq issued a delisting determination letter, denying the Company's compliance plan and its continued listing on Nasdaq, due to the filing delinquency and public interest concerns under Nasdaq Listing Rule 5101. Additionally, the Company was cited for violating the majority independent board requirement set forth in Listing Rule 5605(b)(1)1 and the audit committee composition requirements set forth in Listing Rule 5605(c)(2). In the New Nasdaq Letter, the Company was also cited for its failure to file its Form 10-Q for the quarterly period ended March 31, 2011.
About China Electric Motor, Inc.
China Electric Motor, Inc. (Nasdaq: CELM) is a China-based company that engages in the design, production, marketing and sale of micro motor products through its subsidiaries, Shenzhen YuePengCheng Motor Co., Ltd. and Ningbo Heng Bang Long Electrical Equipment Co., Ltd. The Company's products are incorporated into consumer electronics, automobiles, power tools, toys and household appliances, and are sold under its "Sunna" brand name. The Company provides micro motor products that meet the growing demand for efficient, quiet and compact motors from manufacturers of consumer electronics, automobiles, power tools, toys and household appliances. China Electric Motor, Inc. sells its products directly to original equipment manufacturers and to distributors and resellers both domestically in the People's Republic of China and internationally to customers in Korea and Hong Kong. The Company's manufacturing facilities are located in Shenzhen, Guangdong and Ningbo, Zhejiang.
