GUSHAN ENVIRONMENTAL ENERGY LTD (ADR) 
By NEW YORK, May 9, 2012/PRNewswire/ -- Gushan Environmental Energy Limited ("Gushan" or the "Company"; NYSE: GU), a producer of biodiesel and a manufacturer of copper products in China, today announced that on May 1, 2012, it received a letter from the New York Stock Exchange ("NYSE") notifying the Company that it was not in compliance with one of the NYSE's standards for continued listing of the Company's American depositary shares ("ADSs") on the exchange. Specifically, the NYSE indicated that it considers the Company to be "below criteria" because, as of December 31, 2011, its average global market capitalization over a consecutive 30 trading-day period was less than $50 millionand, at the same time, its total stockholders' equity was less than $50 million. On April 27, 2012, the Company reported that as of December 31, 2011, its total shareholders' equity attributable to the Company was approximately $36.2 million. As of December 31, 2011, the Company's global market capitalization over a consecutive 30 trading-day period was $27.5 million.
Under NYSE continued listing rules, the Company has 90 days from the receipt of the letter to submit a plan advising the NYSE of definitive action the Company has taken, or is taking, that would bring it into conformity with the applicable standards within 18 months of receipt of the letter. If the NYSE staff determines that the Company has not made a reasonable demonstration of an ability to come into conformity with the applicable standards within 18 months, the NYSE staff will promptly initiate suspension and delisting procedures. Otherwise, if the NYSE staff accepts the plan, the Company will be subject to semi-annual review by the NYSE staff for compliance with this plan until either the Company is able to demonstrate that it has returned to compliance for a period of two consecutive quarters or the expiration of the 18 month period. The NYSE staff will promptly initiate suspension and delisting procedures if the Company fails to meet the continued listing standards at the end of the 18 month period. The Company currently intends to submit such a plan and is exploring alternatives for curing the deficiency and regaining compliance with the NYSE's continued listing standards.
The Company's business operations and Securities and
Exchange Commission reporting requirements are unaffected
by this letter. The Company's ADSs will remain
listed on the NYSE under the symbol GU but will be assigned
a ".BC" indicator by the NYSE to signify that the
Company is currently not in compliance with the NYSE's
continued listing standards.
About Gushan Environmental Energy Limited
Gushan produces biodiesel, a renewable, clean-burning and
biodegradable fuel and a raw material used to produce
chemical products, primarily from used cooking oil, and
by-products from biodiesel production, including glycerine
and plant asphalt. Gushan sells biodiesel directly to
users, such as marine vessel operators and chemical
factories, as well as to petroleum wholesalers and
individual retail gas stations. The Company has seven
production facilities, located in the Sichuan,
Hebei, Fujianand
Hunanprovinces and in Beijing,
Shanghaiand Chongqing, with a
combined annual production capacity of 490,000 tons.
Gushan's Sichuanproduction facility is
currently in operation. Gushan also operates a copper
products business in Chinawhich manufactures
copper rods, copper wires, copper granules and copper
plates primarily from recycled copper. Currently, the
copper products business has two plants, with a daily
production capacity of approximately 210 tons of recycled
copper products.
Safe Harbor Statement
This announcement contains forward-looking statements
within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by words such
as "will," "may," "expect,"
"anticipate," "aim,"
"target," "intend," "plan,"
"believe," "estimate,"
"potential," "continue," and other
similar statements. Statements other than statements of
historical facts in this announcement are forward-looking
statements, including but not limited to, the Company's
expectations regarding the expansion of its production
capacities, its future business development, and its
beliefs regarding its production output. These
forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations,
assumptions, estimates and projections about the Company
and the industry. Important risks and uncertainties that
could cause the Company's actual results to be
materially different from expectations include but are not
limited to the effect of any applicable government policy,
law or regulation, of natural disasters, and of
intensifying competition in the biodiesel and alternative
energy industries, the availability of suitable raw
materials to the Company, and the risks set forth in the
Company's filings with the U.S. Securities and Exchange
Commission ("SEC"), including on Form 20-F. The
Company undertakes no obligation to update forward-looking
statements, except as may be required by law. Although the
Company believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure
you that its expectations will turn out to be correct, and
investors are cautioned that actual results may differ
materially from the anticipated results.
For further information, please contact: | ||
US | Asia | |
Hill & Knowlton (New York) | Hill & Knowlton (Hong Kong) | |
Tel: (1) 212 885 0682 | Tel: (852) 2894 6204 | |
SOURCE Gushan Environmental Energy Limited
|
distributed by
|
