ZHENJIANG, China, Nov. 22, 2018 /PRNewswire/ -- Delta Technology Holdings Limited ("Delta" or "the Company") (NASDAQ: DELT) announced today that on November 19, 2018, the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The NASDAQ Stock Market LLC ("Nasdaq") notifying the Company that it is no longer in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market set forth in Nasdaq Listing Rule 5550(b)(1) (the "Nasdaq Listing Rules"). The Nasdaq Listing Rules requires listed companies to maintain stockholders' equity of at least $2.5 million. In the Company's Form 20-F for the period ended June 30, 2018, the Company reported a negative stockholders' equity of approximately $22 million, which is below the minimum stockholders' equity required for continued listing pursuant to the Nasdaq Listing Rules.
The notification received has no immediate effect on the listing of the Company's common stock on Nasdaq. Nasdaq has provided the Company with 45 calendar days, or until January 3, 2018, to submit a plan to regain compliance with the minimum stockholders' equity standard. If the Company's plan to regain compliance is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the notification letter, or until May 18, 2019, to evidence compliance.
The Company, by filing this press release, discloses its receipt of the notification from Nasdaq in accordance with Nasdaq Listing Rule 5810(b).
About Delta Technology Holdings Ltd.
Founded in 2007, Delta is a leading China-based fine and specialty chemical company producing and distributing organic compound including para-chlorotoluene ("PCT"), ortho-chlorotoluene ("OCT"), PCT/OCT downstream products, and other by-product chemicals. The end application markets of the Company's products include Automotive, Pharmaceutical, Agrochemical, Dye & Pigments, Aerospace, Ceramics, Coating-Printing, Clean Energy and Food Additives. The Company is in the process of launching a tea shop chain under the brand Mingyuntang in China as part of the Company's efforts to explore new business lines outside of its specialty chemical business.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in CIS's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by CIS.
SOURCE Delta Technology Holdings Limited