SHANGHAI, March 24, 2015 /PRNewswire/ — Acorn International, Inc. (NYSE: ATV) ("Acorn" or the "Company"), a media and branding company in China engaged in developing, promoting and selling products through extensive direct and distribution networks, announced today that on March19, 2015, the Company was notified by the New York Stock Exchange ("NYSE") that it is not in compliance with one of the continued listing standards of the NYSE. The Company is considered below the NYSE’s continued listing criteria because the average per share closing price of the Company’s American depositary shares ("ADS") for the consecutive 30 trading-day period ended on March 13, 2015 has fallen below the NYSE’s share price requirements. The NYSE requires the average closing share price of a listed company to be no less than US$1.00 per share over a consecutive 30 trading-day period. As of March 13, 2015, the 30 trading-day average closing price of the ADSs was $0.99.
Under the NYSE’s rules, the Company has six months from the date of its receipt of the NYSE notice to regain compliance with the minimum share price rule. The Company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the six-month cure period the Company’s ADSs have a closing share price of at least US$1.00 and an average closing share price of at least US$1.00 over the consecutive 30 trading-day period ending on the last trading day of that month. The Company can also regain compliance if at the expiration of the six-month cure period both a US$1.00 closing share price on the last trading day of the cure period and a US$1.00 average closing share price over the consecutive 30 trading-day period ending on the last trading day of the cure period are attained.
The Company expects to notify the NYSE that it will take steps to cure this deficiency within the prescribed timeframe. During this period, the Company’s ADSs will continue to be traded on the NYSE, subject to the Company’s compliance with other NYSE listing requirements. The Company’s business operations, its Securities and Exchange Commission reporting requirements, credit agreements and other contractual obligations currently are unaffected by this notification.
Cautionary Statement Concerning Forward Looking Statements
This news release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Acorn’s ability meet the standards necessary to maintain its listing on the New York Stock Exchange or other stock exchange, including its ability to cure any non-compliance with such listing standards. Acorn does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About Acorn International, Inc.
Acorn is a media and branding company in China, operating TV direct sales businesses, other direct sales platforms and a nationwide distribution network. Acorn’s TV direct sales platform consists of airtime purchased from both national and local channels. Acorn’s other direct sales platforms include outbound telemarketing centers, e-commerce websites, and catalogs. Acorn has built a proven track record of developing, promoting and selling proprietary-branded products, as well as products from established third parties. For more information, please visit http://ir.chinadrtv.com.
Acorn International, Inc.
Compass Investor Relations
Mr. Tony Gou
Ms. Elaine Ketchmere, CFA
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