KUNMING, China, April 20, 2012 /PRNewswire-Asia-FirstCall/
-- China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Amex
LLC: KUN) ("China Shenghuo" or the "Company"), today announced that
on April 17, 2012, it received a
deficiency letter (the "Deficiency Letter") from the NYSE Amex LLC
("AMEX") stating that the Company has resolved the continued
listing deficiency with respect to Section 1003(a)(i) of the AMEX's
Company Guide (the "Company Guide") referenced in AMEX's letter
dated September 22, 2010.
However, as a result of the Company sustaining losses which are
so substantial in relation to its overall operations or its
existing financial resources, or its financial condition has become
so impaired that it appears questionable, in the opinion of AMEX,
as to whether such issuer will be able to continue operations
and/or meet its obligations as they mature, the Company is no
longer in compliance with Section 1003(a)(iv) of the Company
Guide. The Deficiency Letter states that, in order to
maintain its AMEX listing, the Company must submit a plan of
compliance by May 1, 2012, advising
AMEX how it intends to regain compliance with Section 1003(a)(iv)
of the Company Guide by July 2,
2012. If the Company does not submit such a plan or if the
plan is not accepted by AMEX, the Company would be subject to
delisting procedures as set forth in Section 1010 and part 12 of
the Company Guide.
In view of, among other things, the belief of the Board of
Directors that under the Company's current circumstances, it is not
reasonably practicable for the Company to establish and implement a
plan of compliance that would satisfy AMEX's continued listing
requirements, the substantial financial burden on the Company as a
result of its status as a U.S. public company, the Company's
inability to raise capital in the United
States and the minimal benefits derived from being a U.S.
public company, the Board of Directors of the Company determined on
April 19, 2012 that it is in the best
interest of the Company to voluntarily delist the Company's common
stock from AMEX and deregister its shares with U.S. Securities
& Exchange Commission (the "SEC"). In connection therewith, the
Company notified AMEX on April 20,
2012 of the Company's intention to file a Form 25 -
Notification of Removal from Listing and/or Registration under
Section 12(b) of the Securities Exchange Act of 1934 (the "Exchange
Act"), with the SEC on or about April 30,
2012.
It is expected that the delisting will take effect on or about
May 10, 2012. Accordingly, the
Company expects that the last day of trading of its common stock on
AMEX will be on or about May 10,
2012.
On the effective date of the delisting, the Company plans to
file a Form 15 with the SEC to suspend its duty to file reports
under Section 15(d) of the Exchange Act. Upon filing of the
Form 15, the Company's obligation to file certain reports with the
SEC, including reports on Forms 10-K, 10-Q and 8-K, will
immediately be suspended.
After the Company has filed the Form 15, its common stock is
anticipated to be available for trading on the OTC Pink Sheets,
although there can be no assurances that any trading market for the
Company's securities will exist, and the liquidity of such trading
market may be very limited.
About China Shenghuo
Founded in 1995, China Shenghuo is primarily engaged in the
research, development, manufacture, and marketing of Sanchi-based
medicinal and pharmaceutical, nutritional supplement and cosmetic
products. Through its subsidiary, Kunming Shenghuo Pharmaceutical
(Group) Co., Ltd., it owns thirty SFDA (State Food and Drug
Administration) approved medicines, including the flagship product
Xuesaitong Soft Capsules, which is currently being listed in the
2010 Provincial Insurance Catalogue of sixteen provinces around
China. At present, China Shenghuo
incorporates a sales network of agencies and representatives
throughout China, which markets
Sanchi-based traditional Chinese medicine to hospitals and drug
stores as prescription and OTC drugs primarily for the treatment of
cardiovascular, cerebrovascular and peptic ulcer disease. The
Company also exports medicinal products to Asian countries such as
Indonesia, Singapore, Japan, Malaysia, and Thailand and to European countries such as the
United Kingdom, Tajikistan, Russia and Kyrgyzstan.
With the substantial completion of ShenghuoPlaza at the end of
2010, China Shenghuo entered into a new business - the hotel and
hospitality business. Two floors of ShenghuoPlaza are designed to
be utilized as 12 Ways Chinese Herbal Beauty Demonstration Center.
The balance of ShenghuoPlaza is used as a business hotel -
Zhonghuang Hotel, restaurant and banquet facilities and an
entertainment venue.
China Shenghuo is also expanding into the businesses of wellness
tourism. For more information, please visit
http://www.shenghuo.com.cn.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements," as defined in the United
States Private Securities Litigation Reform Act of 1995,
that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and the
actual results and future events could differ materially from
management's current expectations. Such factors include, but are
not limited to, risks of litigation and governmental or other
regulatory proceedings arising out of or related to any of the
matters described in recent press releases, including arising out
of the restatement of the Company's financial statements; the
Company's ability to refinance or repay loans received; the
Company's uncertain business condition; the Company's continuing
ability to satisfy any requirements which may be prescribed by the
Exchange for continued listing on the Exchange; risks arising from
potential weaknesses or deficiencies in the Company's internal
controls over financial reporting; the Company's reliance on one
supplier for Sanchi; the possible effect of adverse publicity on
the Company's business, including possible contract cancellation;
the Company's ability to develop and market new products; the
Company's ability to establish and maintain a strong brand; the
Company's continued ability to obtain and maintain all
certificates, permits and licenses required to open and operate
retail specialty counters to offer its cosmetic products and
conduct business in China;
protection of the Company's intellectual property rights; market
acceptance of the Company's products; changes in the laws of
the People's Republic of China
that affect the Company's operations; cost to the Company of
complying with current and future governmental regulations; the
impact of any changes in governmental regulations on the Company's
operations; general economic conditions; and other factors detailed
from time to time in the Company's filings with the United States
Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
China Shenghuo Pharmaceutical Holdings, Inc.
Ms. Shujuan Wang
Secretary of Board of Directors
+86-871-7282698
SOURCE China Shenghuo Pharmaceutical Holdings, Inc.