China Precision Steel receives notice of non-compliance with Nasdaq listing requirements
China Precision Steel (NASDAQ:CPSL) announced Thursday that it was notified last week that the company was not compliant with Nasdaq listing requirements.
On September 16, the listing qualifications department of the Nasdaq Exchange said China Precision Steel, which specializes in producing and selling cold-rolled steel products, was not compliant with the rule that requires a listed security to maintain a minimum average closing price of $1.00 per share over a consecutive 30-day trading period.
As such, the company has 180 days from receipt of the notification, or until March 14, 2012, to bring its share price and average share price back above the $1.00 mark.
"The company intends to actively monitor the bid price for its common stock between now and March 14, 2012, and will consider all available options including a reverse stock split to resolve the deficiency and regain compliance with the NASDAQ minimum bid price requirements," China Precision said in a statement.
The Hong Kong-based company, which also provides heat treatment and cutting steel services, sells its cold-rolled steel products to manufacturers primarily in China, as well as overseas markets such as Nigeria, Thailand, Indonesia and the Phillippines. The products are used in the production of car components, food packaging materials, saw blades and textile needles.
Shares of China Precision Steel fell more than 9.5% on Thursday, to trade at $0.696 as of 1:34pm EDT.
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