NINGBO, China, Oct. 6, 2011 /PRNewswire-Asia-FirstCall/ --
Keyuan Petrochemicals, Inc. (Nasdaq: KEYP) ("Keyuan or the
"Company"), a leading merchant manufacturer of various
petrochemical products in China,
announced today that on October 5th,
2011, the Company received a letter from the NASDAQ Hearings
Panel ("the Panel") regarding the Company's appeal to remain
listed. NASDAQ notified the Company that its common stock will be
suspended from the Nasdaq Stock Market effective October 6th.
Management, the board of directors and the independent
committees all worked diligently to provide the Nasdaq with all
requested information in a timely manner and meet the deadlines
previously imposed. Despite the Company's best efforts to become
compliant on all of NASDAQ's requirements, the Panel suspended
Keyuan's listing from the Nasdaq Stock Market. As a result, the
Company's shares will resume trading in the pink sheets under the
ticker symbol KEYP beginning Friday, October
7th.
The final audit and Form 10K for 2010, in addition to the 10-Q
for both the first and second quarter of 2011, is expected to be
filed as soon as possible in the middle of October with the
Securities and Exchange Commission. The 10-K will contain details
surrounding the operations, financials, and a comprehensive list of
actions the Company has taken and is committed to taking in order
to remediate accounting and internal control issues.
Given the significant capital allocation from the Company's U.S.
dollar account for this investigation, review and report, the
dividend payment was not declared in September as anticipated. The
Company and the board are evaluating its current dividend
policy for shareholders.
"The entire management team is extremely disappointed in this
decision given that we did everything which was asked," stated
Chungfeng Tao, Chairman and Chief Executive Officer. "We have
done everything within our power to address the independent review,
to complete our 2010 audit and the financial filings for the first
two quarters of 2011, which we are in the process of finalizing to
submit to the SEC. We will submit an appeal to the NAsdaq with the
hope that once all filings are up to date, we can be reinstated,
however there is no assurance that the appeal will be granted. The
Company spent approximately $5
million, 5 months, and significant corporate resources to
complete the investigation and become compliant with the Nasdaq
requirements. It is extremely important that our shareholders
understand that the Company is continuing to operate and has not
ceased operations of the business. If we are unsuccessful in
achieving a main board listing, the Company will actively pursue
strategic alternatives including but not limited to taking the
company private, a merger or other transaction which will maximize
shareholder value, and ensure we can meet our growth
objectives."
About Keyuan Petrochemicals, Inc.
Keyuan Petrochemicals, Inc., established in 2007 and operating
through its wholly-owned subsidiary, Keyuan Plastics Co., Ltd., is
located in Ningbo, China and is a
leading independent manufacturer and supplier of various
petrochemical products. Having commenced production in October 2009, Keyuan's operations include an
annual petrochemical manufacturing design capacity of 720,000 MT
for a variety of petrochemical products, with facilities for the
storage and loading of raw materials and finished goods, and a
technology that supports the manufacturing process with low raw
material costs and high utilization and yields. In order to meet
increasing market demand, Keyuan plans to expand its manufacturing
capacity to include a SBS production facility, additional storage
capacity, a raw material pre-treatment facility, and an asphalt
production facility.
Safe Harbor Statement
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. For
example, statements about the future use of the proceeds are
forward looking and subject to risks. Keyuan Petrochemicals, Inc.
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission on
forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, risks outlined in
the Company's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form S-1, as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
For more information, please contact:
Investor Relations:
MZ - North America
Ted Haberfield, President
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Website: http://www.hcinternational.net
Mr. Andrew Haag
Managing Partner, USA
Hampton Growth, LLC
Tel: +1-877-368-3566
E-mail: andrew@hamptongrowth.com
Website: www.hamptongrowth.com
SOURCE Keyuan Petrochemicals, Inc.