SHENZHEN, China, April 5 /Xinhua-PRNewswire/ -- PacificNet, Inc.
(Nasdaq: PACT) today announced that on March 30, 2007, it received a letter
from the Nasdaq Stock Market indicating that the Company's common stock is
subject to delisting pursuant to Nasdaq Marketplace Rule 4310(c)(14). Nasdaq
Marketplace Rule 4310(c)(14) requires, among other things, that annual reports
filed with Nasdaq contain audited financial statements. The Nasdaq delisting
letter was issued as a result of the Company's filing of a Current Report on
Form 8-K with the Securities and Exchange Commission on March 22, 2007, which
stated that its former independent auditor, Clancy & Co., P.L.L.C., withdrew
its previously issued audit reports related to the Company's consolidated
financial statements for the fiscal years ended December 31, 2005 and 2004.
Nasdaq has advised that as a result of the withdrawal of the audit report,
PacificNet's Annual Reports on Form 10-KSB that include financial statements
for the fiscal years ended December 31, 2005 and 2004 are incomplete and
therefore insufficient to satisfy Nasdaq Marketplace Rule 4310(c)(14).
The Company's securities are subject to delisting from the Nasdaq Stock
Market at the opening of business on April 11, 2007, unless the Company
requests a hearing on or prior to April 9. 2007, in accordance with the
Marketplace Rule 4800 Series. PacificNet plans to appeal Nasdaq's
determination by requesting an oral hearing, before the Nasdaq Listing
Qualifications Panel. A hearing request will automatically stay the
suspension and delisting of PacificNet's common stock pending the Panel's
review and determination. There can be no assurance that the Panel will grant
the Company's request for continued listing.
PacificNet is currently in the process of evaluating the reasons for the
withdrawal of the audit reports for the years indicated and determining how
quickly it can obtain the reinstatement of such audit reports or new audit
reports regarding such years from its current independent public auditors.
The audit committee of the Company is aware of the issued raised and is
conducting an internal investigation of PacificNet's option grant practices
for the years 2003, 2004 and 2005 and expects that the results of that
investigation will influence the resolution of the larger issues of the audit
report and compliance with the NASDAQ listing requirements.
About PacificNet
PacificNet Inc. (http://www.PacificNet.com) is a leading provider of
Customer Relationship Management (CRM), mobile Internet, e-commerce and gaming
technology in China. PacificNet's clients include the leading telecom
companies, banks, insurance, travel, marketing and business services companies
and telecom consumers in Greater China. PacificNet's corporate clients include
China Telecom, China Mobile, Unicom, PCCW, Hutchison Telecom, Bell24,
Motorola, Nokia, SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of
China, Bank of East Asia, DBS, TNT, Hong Kong Government, and leading hotel-
casinos in Macau and Asia. PacificNet employs over 1,400 staff in its various
subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen,
Guangzhou, Macau, and branch offices in 28 provinces in China and is
headquartered in Beijing and Hong Kong.
Safe Harbor Statement
This Company's announcement contains forward-looking statements. We may
also make written or oral forward-looking statements in our periodic reports
to the SEC on Forms 10-K, 10-Q, 8-K, etc., in our annual report to
shareholders, in our proxy statements, in press releases and other written
materials and in oral statements made by our officers, directors or employees
to third parties. Statements that are not historical facts, including
statements about our beliefs and expectations, are forward-looking statements.
These statements are based on current plans, estimates and projections, and
therefore you should not place undue reliance on them. Forward-looking
statements involve inherent risks and uncertainties. We caution you that a
number of important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, PacificNet's historical and
possible future losses, limited operating history, uncertain regulatory
landscape in China, and fluctuations in quarterly and annual operating
results. Further information regarding these and other risks is included in
PacificNet's Form 10K and other filings with the SEC.
Contact:
PacificNet USA office:
Jacob Lakhany, Tel: +1-605-229-6678
PacificNet Beijing office:
Ada Yu, Tel: +86 (10) 59225000
23rd Floor, Building A, TimeCourt, No.6 Shuguang Xili, Chaoyang District,
Beijing, China 100028
PacificNet Shenzhen Office:
Tel: +86 (10) 33222088
Room 4203, JinZhongHuan Business Center, Futian District,
Shenzhen, China 518040
