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Dec. 20, 2013 /PRNewswire/ -- Linktone Ltd. (NASDAQ: LTON, ASX: LTL) ("Linktone" or the "Company"), a provider of media and entertainment content and services in key strategic markets in
Asia, announced today that it intends to voluntarily delist its American Depositary Shares ("ADSs") from the NASDAQ Global Select Market ("NASDAQ") and thereafter intends to deregister its ordinary shares under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company expects the Form 25 to be filed with the Securities and Exchange Commission (the "SEC") to voluntarily delist its ADSs on or about
January 2, 2014. Delisting from NASDAQ is expected to become effective 10 days after the filing date of the Form 25. Linktone will continue to be subject to reporting obligations under the Exchange Act until such time as it can terminate its registration under the Exchange Act.
Following the delisting and provided that the Company continues to meet the applicable legal requirements, Linktone intends to take the necessary steps to deregister its ordinary shares and terminate its reporting obligations under the Exchange Act. Such deregistration is anticipated to occur in
After its ADSs have been delisted from NASDAQ, Linktone expects that the ADSs may be quoted on the Pink OTC Markets Inc. electronic quotation service if market makers commit to make a market in the Company's shares. The Pink Sheets is an electronic network through which participating broker-dealers can make markets and enter orders to buy and sell shares of issuers. However, Linktone can provide no assurance that trading in its ADSs will continue on the Pink Sheets or otherwise. Moreover, Linktone's ADSs may become more illiquid once they are no longer traded on the NASDAQ, which could negatively impact market prices for the Company's ADSs and make it more difficult for ADS holders to sell their ADSs. For more information about this service, please see
Linktone is also listed on the Australian Stock Exchange (the "ASX"). ADS holders who do not wish to trade on Pink Sheets may convert their ADSs to CHESS Depositary Interests ("CDIs") which can be traded on the ASX. Information regarding the conversion process can be found on
After careful consideration, Linktone's board of directors decided to delist the Company's ADSs from NASDAQ and deregister its ordinary shares as it believes that the savings that will benefit shareholders and the Company outweigh the advantages of continuing as a dual-listed, U.S. reporting company. Without the annual accounting and legal costs and administrative burdens associated with SEC reporting obligations, Linktone believes it will be able to reduce its costs while still maintaining appropriate financial controls. Linktone believes that these changes will allow the Company to better focus on its business.