JINJIANG, China, June 27, 2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Capital Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that its Board of Directors has set the date of June 28, 2016 to be the effective date for the Company's reverse stock split. The Company's ordinary shares will begin trading on the NASDAQ Stock Market on a split-adjusted basis when the market opens on June 28, 2016. The new CUSIP number for the Company's common stock following the reverse split is G2113X134.
As previously announced, on May 23, 2016, China Ceramics' Board of Directors approved a one-for-eight reverse stock split intended to increase the per share trading price of the Company's outstanding ordinary shares in order to comply with the minimum bid price requirement of $1.00 per share for continued listing on the NASDAQ Stock Market. In order to maintain the Company's listing on the NASDAQ Capital Market, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of ten consecutive trading days by September 19, 2016.
"The reverse stock split is intended to satisfy the requirements for China Ceramics common stock to continue to list on the NASDAQ Stock Market and it does not fundamentally alter the Company's shareholder value nor its market capitalization in any way," said Jiadong Huang, Chief Executive Officer of China Ceramics. "We believe that an additional benefit of this action could be that it will raise the visibility of our stock so that it appeals to a wider range of retail and institutional investors."
As a result of the reverse stock split, every eight issued and outstanding ordinary shares as of the effective date will automatically be combined into one issued and outstanding share. Consequently, the reverse stock split will reduce the number of outstanding ordinary shares of the Company from approximately 21.9 million shares to approximately 2.7 million shares and the par value per share will increase from $0.001 to $0.008. In lieu of issuing fractional shares, the Company will round fractions of shares down to the nearest whole share. All outstanding stock options, warrants and other rights to purchase the Company's ordinary shares will be adjusted proportionately as a result of the reverse stock split. The number of total authorized ordinary shares of the Company will not be changed as a result of the reverse split. There can be no assurance that following the reverse split, the Company's common stock will remain above $1.00 per share minimum for the requisite period as of September 19, 2016 to regain listing compliance.
Once the reverse stock split becomes effective, shareholders holding shares through a bank, broker or other nominee will have their shares automatically adjusted to reflect the reverse stock split. Beneficial holders may contact their bank, broker or nominee for more information. Shareholders holding physical certificates of ordinary shares will receive a letter of transmittal from the Company's transfer agent, Continental Stock Transfer & Trust, with specific instructions regarding the exchange of shares. Please direct any questions to your broker or the Company's Transfer Agent, Continental Stock Transfer & Trust, by calling 212-509-4000.
About China Ceramics Co., Ltd.
China Ceramics Co., Ltd. is a leading manufacturer of ceramic tiles in China. The Company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings. China Ceramics' products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL", the "TOERTO" and "WULIQIAO" brands, and the "Pottery Capital of Tang Dynasty" brands, are available in over 2,000 style, color and size combinations and are distributed through a network of exclusive distributors as well as directly to large property developers. For more information, please visit http://www.cceramics.com.
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SOURCE China Ceramics Co., Ltd.