On Sept. 13, Capital State learned that China XD Plastics Co Ltd, a US-listed company, announced that it had received a letter of delisting from NASDAQ on Sept. 10, and Nasdaq staff rejected the company's request to continue listing.
China XD Plastics Co Ltd plans to request a hearing no later than September 14, 2021, in order to seek an exception period within which to complete its filing and thus re-meet the listing criteria. The company's hearing request will automatically suspend the delisting of its common shares for up to 15 calendar days (that is, until September 29, 2021).
The letter dated 7 September 2021 states that the Nasdaq staff informed the Company on 16 April 2021 that it did not comply with the Nasdaq listing rules 5250 (c) (1) (the "rules"). That is, because the company did not submit form 10murk for the fiscal year ending December 31, 2020, and informed the company through subsequent additional default notices that it failed to submit form 10murQ for the period ending March 31 and June 30, 2021. The company submitted materials about its re-compliance plan ("submittal") to Nasdaq. Based on staff reviews and submissions, with the exception of the telephone discussion on 26 July 2021, the staff considered that the company did not provide a final plan to demonstrate its ability to achieve compliance.
If the company submits all default reports and resumes compliance before the Nasdaq hearing, the company's common shares will continue to be traded on the Nasdaq. There is no guarantee that the company will be able to submit its default report before the hearing, or that the hearing panel will allow the company to suspend delisting or gain additional time to regain compliance.
Hearings are usually held within 30-45 calendar days from the date of the request, and the hearing panel usually issues a written decision about 35 days after the hearing. If its decision is adverse, Xindaji may also choose to appeal to the Nasdaq listing hearing and Review Committee within 15 calendar days after the panel's decision.
As of Sept. 10, US Eastern time, China XD Plastics Co Ltd closed at US $0.549, an increase of 0.73%, with a total market capitalization of US $38.73 million.