No Immediate Effect on Listing -- FFHL Has 180 Days to Regain Compliance
BEIJING, June 18 /PRNewswire-Asia/ -- 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 on June 11, 2010, it received a NASDAQ Staff Deficiency Letter indicating that the Company is not currently in compliance with Nasdaq Listing Rule 5450(b)(1)(c), which requires a listed company's securities to maintain a Minimum Market Value of Publicly Held Shares ("MVPHS") of $5,000,000 or more. However, the Nasdaq Listing Rules (the "Nasdaq Rules") also provide the Company a grace period of 180 calendar days in which to regain compliance.
Fuwei's management is reviewing various options available to the Company, including regaining compliance and continued listing on The NASDAQ Stock Market and applying for a transfer to The Nasdaq Capital Market. If at anytime during this grace period the Company's MVPHS exceeds $5,000,000 or more for a minimum of ten consecutive trading days, Nasdaq will provide the Company with a written confirmation of compliance.
In the event that the Company is unable to regain compliance with the Nasdaq Rules prior to the expiration of the grace period, the Company will receive a written notification that its ordinary shares are subject to delisting.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei Films' 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 both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. 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.