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8-K - CURRENT REPORT - China Auto Logistics Inc | f8k072314_chinaauto.htm |
Exhibit 99.1
Floor 1 FTZ International Auto Mall, 86 Tianbao Avenue, Free Trade Zone, Tianjin, P.R.China 300461
Tel: 86 (22) 25762771 Fax: 86 (22) 66271509
China Auto Logistics Says It Will Vigorously Oppose “Grossly Unfair And Damaging” Plan By Depository Trust Company To Impose “Global Lock” On Its Securities
Company Says It Aims To Protect Shareholders From Being Punished By A Decision Said To Be Based On Recent SEC Enforcement Actions Against “Outsiders” Accused Of Illegal Trading, While The Company Itself Has Not Been Accused Of Any Wrongdoing
Chairman Asks, “Is This Really Because We Are a China Based Company?”
TIANJIN, CHINA--(July 23, 2014) - China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), a top seller in China of luxury imported automobiles, a leading provider of auto-related services and a soon to be entrant in used car sales in China, today said it will vigorously oppose a “grossly unfair and highly damaging” plan by the Depository Trust Corporation, (“DTC”), as detailed in a notification letter received by the Company from DTC on July 17, 2014, to suspend all book-entry services provided to DTC participants with respect to CALI shares (the “Global Lock”). The letter indicated the Company has until August 13, 2014 to provide a written response stating its objections to the DTC action, after which DTC will make either a determination or a request for further information within 20 business days.
According
to the Company, the DTC decision to impose a “Global Lock” affecting all current shareholders is not based on any
wrongdoing by the Company and there have been no allegations made against it. Rather, it is said to be based on DTC becoming aware
of a recent SEC enforcement action against S. Paul Kelley et. al., in which the SEC alleges that Kelley et. al., among other offenses,
violated Section 5 of the Securities Act. DTC’s concern is that certain deposits made by Kelley et. al. were in violation
of DTC’s eligibility standards, and were comingled with shares of CALI eligible for deposit. Striving
To Maintain U.S. Listing “It
is patently unfair,” stated Mr. Tong Shiping, Chairman and
CEO of China Auto Logistics, “that our current shareholders should be made to bear
the brunt of the SEC enforcement action for past actions of a group of allegedly unscrupulous individuals. Nor should our China-based
company be so severely punished after years of willing compliance with all applicable U.S. regulations, and shares that have been
listed on NASDAQ since January 2010.” “We
are fully aware,” he continued, “that perhaps a disproportionate number
of China-based companies that came public in the U.S. in recent years have been accused of, and in some cases found guilty of
serious improprieties, while other simply have been chased away after the harshest imaginable treatment by the media and some
very aggressive short sellers. Our Company, however, nevertheless has strived to maintain its U.S. listing, and communicates openly
and regularly with our shareholders with the hope that their patience ultimately will be rewarded by the bright future we still
see ahead in an improving economic environment.” “Quite
simply,” Mr. Tong continued, “we see DTC’s action as a matter of throwing out the baby with the bathwater, and
I have to ask, is this really based on our being a China-based company more than anything else? ” “We
are quite determined to fight this tooth and nail,” Mr. Tong said, “and will update shareholders when we have more
information.” About
China Auto Logistics Inc. China
Auto Logistics Inc. is one of China's top sellers of imported luxury vehicles. It also provides a growing variety of "one
stop" automobile related services such as short term dealer financing. Additionally, in November, 2013, it acquired the owner
and operator of the 26,000 square meter Airport International Automall in Tianjin for $91.4 million, with plans to develop it,
among other things, as the flagship site for a used car business, with Car King (China) Used Car Trading Co., Ltd. Information
Regarding Forward-Looking Statements Except
for historical information contained herein, the statements in this press release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted
results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in
our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission. Contacts:
Sun Jiazhen
sjz_cali@126.com
Ken Donenfeld
DGI Investor Relations Inc.
kdonenfeld@dgiir.com
Tel: 212-425-5700
Fax: 646-381-9727