NEW YORK, Nov. 9, 2012 /PRNewswire/ -- SmartHeat Inc., (NASDAQ: HEAT; website: www.smartheatinc.com) received notification from the NASDAQ Listing Qualifications Hearings Panel that it affirmed the determination made by the staff of the NASDAQ's Listing Qualifications Department to delist the company's shares of common stock from the NASDAQ Stock Market ("NASDAQ"). As a result, the company's shares of common stock, which were subject to a trading halt since May 30, 2012, have been suspended from the NASDAQ Stock Market effective at the open of business on Friday, November 9, 2012. The company anticipates that its shares of common stock will be eligible for quotation on the OTCQB.
On May 30, 2012, NASDAQ halted trading in shares of the company's common stock pending NASDAQ's request for additional information from the company with respect to the restructuring of our board and management and our entry into a secured revolving credit facility. We provided NASDAQ with additional information and clarification with respect to these matters, our business operations and financial condition, as requested.
On August 23, 2012, the company received a notice which stated that "the staff has determined to apply more stringent criteria," to the company and, accordingly, to delist the company's securities pursuant to the staff's broad discretionary authority under Listing Rule 5101. The staff in its letter stated that it has concerns "regarding the company's solvency, viability, operational structure and suitability for listing."
The company strongly disagrees with the delisting determination made by NASDAQ's staff and the panel. The company intends to file an appeal of the panel's determination with the NASDAQ Listing and Hearing Review Council. The appeal will not stay the suspension set for November 9, 2012.The company's board of directors urges its stockholders to vote "FOR" all of the proposals to be voted on at the company's annual meeting to be held in Hong Kong on December 11, 2012, demonstrating their support of the company in its appeal with the listing council. For further information regarding the proposals to be voted on at the annual meeting, please consult our definitive proxy statement filed with the Securities and Exchange Commission on October 26, 2012, and available at http://www.sec.gov/Archives/edgar/data/1384135/000118518512002316/smartheat-def14a102512.htm and at www.smartheatinc.com. About SmartHeat Inc.