ChinaCache Turns to OTC Market After Turbulent Times
ChinaCache International Holdings Ltd. (CCIH), a provider of online content and web applications, is delisting from The Nasdaq Stock Market.
The Nasdaq Hearings Panel has issued a notice on Sept. 4 in which it said it has determined to delist the shares of the Beijing-based company, according to ChinaCache's statement on Tuesday. The company said it does not intend to appeal the panel’s decision in a statement filed with the U.S. Securities and Exchange Commission.
The shares of ChinaCashe will be traded on over-the-counter (OTC) markets after it files the regulatory documents with FINRA and SEC, according to the report. “ChinaCache remains a publicly quoted company and will strictly adhere to SEC compliance protecting the interest of the Company’s investor base,” Bin Liu, the acting chief executive officer of ChinaCache, said in the statement.
“If the shares resume trading on the over-the-counter markets, the shares may trade less frequently and in smaller volumes than securities traded on Nasdaq,” Liu added. He also said the company plans to apply for a Nasdaq listing in the future.
In May of this year, ChinaCache announced that its chairman and former chief executive officer, Song Wang, was arrested and was being investigated on allegations of bribery. The scandal sent the stock of the company down 30 percent at the time to 77 cents per American depositary share.
Shares in ChinaCache, which traded near $35.00 per ADS in 2009, have been trading below $1 level, at 88 cents as of recent.