NEW YORK, June 17, 2011 /PR Newswire/ -- Deer Consumer
Products, Inc. (Nasdaq: DEER) (website: http://www.deerinc.com/), a
leading provider of "DEER" branded household consumer products to
Chinese consumers and a vertically integrated manufacturer of small
household and kitchen appliances for global customers, announced
today that it has received calls from shareholders regarding the
sudden drop in the price of its common stock due to false market
rumors. Deer affirms that it is conducting its normal course of
business and is not aware of any negative developments within the
company or in its operations.
DEER GRANTED SUBPOENA POWER BY NEW YORK COURT
On March 28, 2011, Deer filed
lawsuit against short sellers and fictitious bloggers alleging an
orchestrated scheme to manipulate and depress Deer's stock. A
New York State judge recently
granted Deer permission to serve document subpoenas on various
parties related to the lawsuit. Deer has sent out extensive
notifications to various custodian banks and others and plans to
subpoena other entities, including several known persons spreading
rumors who are believed to be engaged in illegal short
selling and located in California.
Deer will continue to pursue all legal actions to protect
shareholders value.
AFFIRMS 2ND QUARTER DIVIDEND PAYMENT, AFFIRMS 2011 FINANCIAL
GUIDANCE
As previously announced, Deer's Board of Directors approved a
$0.05 per share quarterly cash
dividend for the 2nd quarter ending June 30,
2011. The dividend will be paid on July 15, 2011, to shareholders of record at the
close of business on June 30, 2011.
Deer also affirms its previously issued financial guidance for
2011.
WARNING AGAINST CONTINUED NAKED SHORT SELLING IN DEER SHARES
As of June 16, 2011, Deer's common
stock has been on the NASDAQ's Reg SHO list for 63 consecutive
days, which suggests that a large number of Deer shares have not
settled for 63 consecutive settlement days, reflecting continued
illegal naked short selling in Deer's shares.
STRONG BALANCE SHEET
As of Q1/2011, Deer had shareholders' equity of approximately
$150 million, or $4.45 per share in net assets and more than
$28 million in cash without any
long-term debts. Deer has sufficient cash on hand and has no plan
to dilute our shareholders.
About Deer Consumer Products, Inc.
Deer Consumer Products, Inc. is a NASDAQ Global Select Market
listed U.S. company with its primary operations in China. Deer has a 16-year operating business
as well as a strong balance sheet. Operated by Deer's founders and
supported by more than 100 patents, trademarks, copyrights and
approximately 2,000 staff, Deer is a leading provider of "DEER"
branded consumer products to Chinese consumers and a leading
vertically integrated manufacturer of small home and kitchen
appliances for global customers. DEER's product lines include
series of small household and kitchen appliances as well as
personal care products designed to make modern lifestyles easier
and healthier.
Safe Harbor Statement
All statements in this press release that are not historical are
forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
There can be no assurance that actual results will not differ from
the company's expectations. You are cautioned not to place undue
reliance on any forward-looking statements in this press release as
they reflect Deer's current expectations with respect to future
events and are subject to risks and uncertainties that may cause
actual results to differ materially from those contemplated.
Potential risks and uncertainties include, but are not limited to,
the risks described in Deer's filings with the Securities and
Exchange Commission.
Contact Information:
Corporate Contact:
Ms. Helen Wang, President
Deer Consumer Products, Inc.
Tel: 011-86-755-86028300
Email: investors@deerinc.com
SOURCE Deer Consumer Products, Inc.