Keyuan notified of NASDAQ delisting
Despite being informed that Keyuan Petrochemicals’ stock may be delisted from the NASDAQ, company chairman and CEO Chungfeng Tao states demand for its products “remains strong”. The Chinese petrochemical product manufacturer disclosed on July 11 that it received a letter from the NASDAQ regarding a delisting of its stock based on a review of the company and pursuant to NASDAQ Listing Rule 5101 and Listing Rule 5250 (c)(1). Keyuan says it has requested a hearing to appeal this decision and adds that its management is “working diligently with all relevant authorities to regain compliance with its regulatory requirements.”
“I look forward to resolving all pending issues as soon as possible. In the meantime, we welcome all investors to come visit our facilities to witness the tremendous progress we are making,” Tao continued. Keyuan reports its operations remain “business as usual” and it is executing its growth plan “according to schedule.” This plan involves capacity expansion projects that were completed in April 2011 and give the company a total annual capacity of 720,000 tonnes plus work on new facilities, including a Styrene-Butadiene-Styrene production plant, which is said to be “progressing on schedule.” Keyuan has also signed a joint technology development agreement with Hangzhou Zhongce Rubber Company to develop new commercial applications for a Solution Polymerization styrene Butadiene Rubber for tyre industry customers.
Prax Capital, who invested $20 million in Keyuan in September 2010, has voiced its commitment to the company and its management team. “We are as confident as before on the management and business prospect of Keyuan,” said Prax Capital partner Michael Xu. “I believe Keyuan will come out much stronger after the unfortunate special investigation and deliver fundamental value.”
“In conclusion, I am deeply humbled by the collateral damage resulting from our short-term challenges,” Tao added. “I want to personally thank our 437 dedicated employees and our shareholders for maintaining their trust in our management team through these difficult times. We are committed to assisting with the completion of this independent investigation and to regain reporting and listing compliance. Furthermore, we continue to grow our business through facility expansions and new customers. With the tremendous assets we have already built and a clear growth plan, I am confident we will generate significant shareholder returns.”