SHENZHEN, China, Oct. 16, 2012 /PRNewswire/ -- Deer Consumer Products, Inc. (NASDAQ: DEER) ("Deer" or the "Company"), a leading provider of "DEER" branded consumer products, announced today that on October 10, 2012, the Company received a letter dated October 10, 2012 from the NASDAQ Listing Qualifications Staff ("NASDAQ Staff"). In addition, on October 12, 2012, the board of directors of the Company appointed Mr. Hardy Zhang as a director of the Company, as Chairman of the Board's Audit Committee being the Audit Committee Financial Expert, and as a member of each of the Board's Compensation and Nominating and Corporate Governance Committees.
Receipt of NASDAQ Notification Letter
As previously disclosed, on October 1, 2012, Arnold F. Staloff resigned as a member of the Board of Directors of the Company, as Chairman of the Board's Audit Committee, and as a member of the Board's Compensation and Nominating and Corporate Governance Committees. In the NASDAQ letter dated October 10, 2012, NASDAQ Staff informed the Company that due to the resignation of Mr. Staloff, the Company no longer complies with NASDAQ's independent director and audit committee requirements under NASDAQ Listing Rule 5605. In addition, NASDAQ Staff stated in the letter that given its delisting determination made on October 2, 2012, and the related public interest concerns cited, NASDAQ Staff has determined to apply more stringent criteria under NASDAQ Listing Rule 5101 and deny the Company the cure periods. Accordingly, Mr. Staloff's resignation serves as an additional basis for delisting the Company's securities from The Nasdaq Stock Market.
Appointment of New Independent DirectorOn October 12, 2012, the Board of Directors of the Company appointed Mr. Hardy Zhang as a director of the Company, Chairman of the Board's Audit Committee being the Audit Committee Financial Expert, and a member of each of the Board's Compensation and Nominating and Corporate Governance Committees. Mr. Zhang is currently the chief financial officer and director of Hero Faith International Enterprise Limited, a Hong Kong based financial advisory firm. Prior to his joining Hero Faith International Enterprise Limited in December 2010, Mr. Zhang was a financial consultant to various private companies from January 2010 to December 2010, before which served as an audit manager at Da Hua Certified Public Accountants, a member firm of BDO International, from July 2005 to January 2010. Mr. Zhang received a master degree of finance from Macquarie University, Australia and is a Certified Practising Accountant of Australia. Following the appointment of Mr. Zhang, the Company's Board of Directors consists of three independent directors and two non-independent directors, and the Audit Committee is comprised of three members.