BEIJING, April 25 /Xinhua-PRNewswire/ -- PacificNet, Inc. (Nasdaq: PACT)
today reported that the Company received a letter on April 19, 2007, from The
Nasdaq Stock Market indicating that as a result of the Company's failure to
file its Annual Report on Form 10-K for the fiscal year ended December 31,
2006 with the Securities and Exchange Commission by April 17, 2007 (the
deadline for filing its Form 10-K after having requested a 15-day extension
from the original due date), the Company is not in compliance with the Nasdaq
requirements for continued listing set forth in Nasdaq Marketplace Rule
4310(c)(14), and its securities are, therefore, subject to delisting from The
Nasdaq Global Market. Nasdaq Marketplace Rule 4310(c)(14) requires the Company
to file all required reports with Nasdaq on or before the date they are
required to be filed with the Securities and Exchange Commission.
As previously disclosed, the Company's prior independent public
accountants have withdrawn their audit reports regarding the Company's
financial statements for the years ended December 31, 2005 and 2004 and the
Company's audit committee is currently conducting an independent internal
investigation with respect to the Company's stock option grant practices. The
Company has a hearing scheduled with the NASDAQ Listing Qualifications Panel
at which time it will present a plan of compliance with respect to the
timeline for the re-instatement of audited financial statements for the fiscal
years ended December 31, 2005 and 2004, and the filing of the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2006. In the event
the Company fails to address the deficiencies, the NASDAQ Listing
Qualifications Panel will consider the record as presented at the hearing and
will make its determination based upon that information. There can be no
assurance that the NASDAQ Listing Qualifications Panel will grant the
Company's request for continued listing.
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.
