NYSE to Delist SinoHub, Questions Finances PDF Print E-mail
Written by Mike Buetow   
Monday, 24 September 2012 09:49

SHENZHEN -- The New York Stock Exchange has rejected private label cellphone ODM SinoHub's plan of compliance and plans to begin delisting proceedings immediately.

The letter stated that the company is subject to delisting as the company or its management has engaged in operations, which, in the opinion of the NYSE, are contrary to the public interest. The NYSE cited the following actions as raising significant public interest concerns:

  • The resignation of Baker Tilly during the review of the company's Form 10-Q for the period ended June 30 raises serious concerns that the reasons for the resignation may have been related to financial reporting and other irregularities.
  • The company's use of personal bank accounts in the name of its CFO and a finance manager raises significant concerns over whether such accounts were used for legitimate business purposes.
  • The CFO's sole control over the company's bank accounts raises serious concerns about the company's internal controls.
  • The company's inability to retain an independent registered accounting firm, US securities counsel, or audit committee raises concerns that the company will not be able to meet its reporting and regulatory requirements in the near term.
  • The company's lack of disclosure regarding its inability to access its bank accounts and its failure to timely pay its creditors raises concerns as to whether the company is properly communicating material news to the public.

These actions by the company, its management and/or its agents cast material doubt on the integrity of the SinoHub's financial statements, its operations and internal controls. Thus, continued listing of the company's common stock on the exchange would not be in the public interest, the NYSE wrote.

NYSE further stated that SinoHub's financial condition has "become so impaired that it appears questionable in the opinion of the Exchange that the company will be able to continue operations and/or meet its obligations as they mature."

 

PCB West: The Silicon Valley's leading printed circuit design and manufacturing conference: Sept. 25-27, 2012 www.pcbwest.com

 

Last Updated on Monday, 24 September 2012 11:30
 

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