SinoHub Receives Delisting Letter from NYSE MKT
SinoHub (NYSE: SIHI), an electronics company whose main business is manufacturing and distributing custom, private-label mobile phones, announced today that on September 19, 2012 it received a letter from NYSE MKT (the "Exchange") informing the Company that the Exchange had rejected its plan of compliance, which addressed the actions the Company had taken, or would take, to bring the Company into compliance with Sections 134 and 1101 of the NYSE MKT Company Guide (the "Company Guide"), and moved to immediate delisting proceedings.
1. The letter stated that the Company is subject to delisting pursuant to Section 1003(f)(iii) of the Company Guide in that the Company or its management has engaged in operations, which, in the opinion of the Exchange, are contrary to the public interest. In this regard, Staff believes that the actions (including, but not limited to, inaction) raise 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, 2012 raises serious concerns that the reasons for the resignation may have been related to financial reporting and other irregularities at the Company. The Company's use of personal bank accounts in the name of its Chief Financial Officer and a finance manager raises significant concerns over whether such accounts were used for legitimate business purposes. The Chief Financial Officer'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, U.S. 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 Company'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.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.