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8-K - China Shenghuo Pharmaceutical Holdings Inc | v197515_8k.htm |
Exhibit
99.1
China
Shenghuo Receives Notice from
NYSE
Amex LLC Regarding Listing Standards
KUNMING, China, September 27,
2010 -- China Shenghuo Pharmaceutical Holdings, Inc. (NYSE Amex LLC: KUN)
(“China Shenghuo” or the “Company”), today announced that on September 22, 2010,
it received a deficiency letter from the NYSE Amex LLC (“AMEX”) stating that the
Company was not in compliance with Section 1003(a)(i) of the AMEX’s continued
listing standards as a result of the Company having stockholders’ equity of less
than $2,000,000, and losses from continuing operations and net losses in two out
of its three most recent fiscal years. The Company was given an opportunity to
submit a plan of compliance (a “Plan”) to the AMEX by October 22, 2010 to
demonstrate the Company’s ability to regain compliance with Section 1003(a)(i)
by March 22, 2012.
Pursuant
to the Deficiency Letter, if the AMEX determines that the Company has made a
reasonable demonstration in the Plan of an ability to regain compliance with the
continued listing standards by March 22, 2012, the AMEX will accept the
Plan. If the AMEX does not accept the Plan, or the Company does not
make adequate progress and complete the actions outlined in the Plan by March
22, 2012, the AMEX will initiate delisting proceedings against the
Company.
The
Company’s unaudited net loss attributable to stockholders for the six months
ended June 30, 2010, was narrowed to $28,837 as compared to an unaudited net
loss attributable to stockholders of $6.7 million for the six months ended June
30, 2009. The Company expects to be profitable for the nine months
ending September 30, 2010 and for the full fiscal year ending December 31,
2010. The Plan that the Company will present to the AMEX will show
that the Company projects that within the 18-month plan period its stockholders’
equity will increase to the $2 million level as a result of its internally
generated return to profitability. Should the Company issue equity,
whether in a private or public offering during that period, it would accelerate
meeting this target. However, there can be no assurance that the AMEX
will find the Plan to be submitted to be acceptable or, even if accepted, that
the Company will in fact generate sufficient net profit to achieve the requisite
stockholders’ equity threshold. Therefore, the Company can provide no
assurances that it will regain compliance with the AMEX’s continued listing
standards, and its failure to do so could result in the delisting of the
Company’s common stock from the AMEX. Until the Company achieves
compliance with the AMEX’s requirements, the Company’s stock trading symbol will
be appended with the “.BC” extension.
About
China Shenghuo
Founded
in 1995, China Shenghuo is a specialty pharmaceutical company that focuses on
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 listed in the
Insurance Catalogue. 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. 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 the Board of Directors
Email:
wangshujuan@chinashenghuo.net
Tel:
+86-871-728-2698