On Tuesday, Kingold Jewelry Inc (KGJI.US) announced that the company had notified the Nasdaq stock market of its intention to voluntarily delist its common shares from the Nasdaq capital market, Zhitong Financial APP learned.

After the 10-day period for the company to notify NASDAQ of its intention to delist, the company intends to file a voluntary delisting application with NASDAQ and the U.S. Securities and Exchange Commission (SEC) on August 21, 2020. Delisting will take effect on August 31, 2020, 10 days after the application is submitted.

The company expects its common shares to be quoted and traded on the over-the-counter market after the application is submitted on August 21, 2020, without any guarantee. Kingold Jewelry Inc said the decision to delist from NASDAQ is the result of the board's review of a number of factors, especially the cost and feasibility of continuing to comply with Nasdaq listing requirements and the company's current financial position.

In considering whether to delist from NASDAQ, the company takes into account in particular that it has received written notices from the listing qualification department of the NASDAQ stock market on June 30, 2020 and July 2, 2020, indicating that the company does not meet the requirements of Nasdaq listing rules 5250 (c) (1). It is not possible to submit the annual report on form 10murk for the year ended 31 December 2019 and the quarterly report on form 10murQ for the period ended 31 March 2020. According to the notice, the company is required to submit a plan for delinquent forms 10murk and 10Muq to re-comply with section 5250 (c) (1).

The company submitted the plan to the listing qualification department on July 16, 2020, and was informed by telephone on August 6, 2020 that the plan was not accepted. As a result, the company has learned that NASDAQ is likely to initiate a process to delist its common shares from the NASDAQ capital market. After being told that the plan had been rejected, the company's board of directors weighed the chances of delisting against the cost of the appeal and decided to submit a voluntary delisting application.