DEERFIELD BEACH, Fla., Dec. 14, 2011 /PRNewswire/ -- China Direct Industries, Inc. (the "Company") (NASDAQ: CDII), a U.S. based company that sources, produces and distributes industrial products in China and the Americas in two core business segments, announced today that it received a letter from the Nasdaq OMX Group on December 12, 2011 indicating that the Company no longer meets the minimum bid price requirement for continued listing set forth in Nasdaq Marketplace Rule 5450(a)(1). The letter gives China Direct Industries notice that bid price of the Company's common stock has closed under $1.00 for the last 30 business days.
The Nasdaq notice has no effect on the listing of the Company's common stock at this time. Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has an initial period of 180 calendar days, or until June 11, 2012, to regain compliance. The letter states the Nasdaq staff will provide written notification that the Company has achieved compliance with Rule 5450(a)(1) if at any time before June 11, 2012, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days.
If the Company cannot demonstrate compliance with Rule 5450(a)(1) by June 11, 2012, it may transfer its listing to The Nasdaq Capital Market if it meets the initial listing criteria set forth in Nasdaq Marketplace Rule 5505, except for the bid price requirement. In that case, it may have an additional 180 calendar day period in which to comply with the minimum bid price requirement. The Company currently meets these initial listing criteria. Otherwise, the Nasdaq staff may begin the process to have the Company's securities delisted. At that time, the Company may appeal the Nasdaq staff's determination to delist its securities to a Listing Qualifications Panel.
The Company intends to actively monitor the bid price for its common stock between now and June 11, 2012, and will consider all available options to regain compliance with the Nasdaq minimum bid price requirement.About China Direct Industries, Inc China Direct Industries, Inc. (NASDAQ: CDII - News), is a U.S. based company that sources, produces and distributes industrial commodities in China and the Americas and provides business and financial consulting services. Headquartered in Deerfield Beach, Florida with corporate offices in Shanghai, China Direct Industries' unique infrastructure provides a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit http://www.cdii.net. DISCLOSURE NOTICE: