BEIJING, May 30, 2013 /PRNewswire-FirstCall/ -- Telestone Technologies Corporation (NASDAQ: TSTC) (the "Company"), a leading supplier of local access network solutions for communications networks in China, today announced that it received a Staff Determination Letter (the "Notice") from The NASDAQ Stock Market LLC ("NASDAQ") on May 23, 2013, indicating that NASDAQ has determined to suspend from trading and delist the Company's common stock from the NASDAQ Stock Market, effective the open of business on June 3, 2013.
As previously disclosed, the Company is not in compliance with the continued listing requirements under NASDAQ Listing Rule 5250(c)(1) due to the Company's inability to timely file its annual report on Form 10-K for the year ended
December 31, 2012. On
May 1, 2013, the Company filed a plan with NASDAQ to regain compliance with continued listing requirements, however NASDAQ did not approve the plan. In addition, the Company also failed to file its quarterly report on Form 10-Q for the period ended
March 31, 2013, which constitutes a separate basis for delisting under NASDAQ Listing Rule 5250(c)(1). In the Notice, NASDAQ also cited NASDAQ Listing Rule 5101, which affords NASDAQ "broad discretionary authority over the initial and continued listing of securities in NASDAQ." Specifically, the Notice stated that the Staff of NASDAQ believes that the reasons underlying the Company's filing delinquencies raise significant public interest concerns under Listing Rule 5101. Based on these factors, the Staff made the determination to delist the Company's securities from The NASDAQ Stock Market.
The Company has determined not to appeal NASDAQ's determination. As previously disclosed, the Company has not obtained records from its Sichuan Ruideng subsidiary (the "Subsidiary") that are necessary for the completion of the audit of the Company's financials for the fiscal year ended December 31, 2012. Also, as disclosed in the Company's Form 12b-25 filed May 16, 2013, to date, the prior owners of the Subsidiary, who are also tasked with its management, have refused to deliver the records to the Company headquarters. The Company doubts that the potential remedial measures necessary to obtain such financial records can be completed within 180 days, and, as such, the Company feels the success of an appeal of the delisting determination would be unlikely. Therefore, the Company will not appeal NASDAQ's determination.