HONG KONG, April 9, 2012 /PRNewswire-Asia/ -- Global Sources Ltd.'s (NASDAQ: GSOL) Executive Chairman Merle A. Hinrichs issued a statement regarding the halting of the company's stock trading on NASDAQ.
Hinrichs said: "NASDAQ's decision to halt trading of GSOL shares on April 3 came without warning and in management's view was totally unjustified. NASDAQ's request for additional information above and beyond normal financial accounting requirements has been fully and satisfactorily provided to NASDAQ. Trading in GSOL shares resumed on April 4.
"As we understand it, recently NASDAQ has begun the practice of requiring companies with Chinese operations to provide physical evidence of cash balances at banks via third party accountants. While GSOL has been listed on NASDAQ since 2000 without reproach, we too received NASDAQ's request in November 2011 to engage an independent CPA firm to conduct a physical visit to our financial institutions in Hong Kong and mainland China. We complied and delivered the reports on a timely basis. However, as one report was dated December 31, 2011 and another dated March 31, 2012, without notice NASDAQ determined it required additional information and halted our share trading on April 3. We immediately clarified the matter with NASDAQ and trading was resumed on April 4, reflecting the time zone difference. We will continue to maintain open communications with NASDAQ and any additional requests will be met promptly.
"Global Sources management takes great pride in its corporate governance, financial reporting and transparency for which it has received numerous awards.
"Management is totally committed to our shareholders as evidenced by 41 years of profitability during which we have maintained the highest of corporate standards."
About Global Sources
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China.
The core business facilitates trade between Asia and the world using English-language media such as online marketplaces (http://www.globalsources.com), print and digital magazines, sourcing research reports, private sourcing events, trade shows, and online sourcing fairs.
Over 1.18 million international buyers, including 85 of the world's top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads and win orders from buyers in more than 240 countries and territories.
Global Sources' other businesses provides Chinese-language media to companies selling to and within Greater China. These services include online web sites, print and digital magazines, seminars and trade shows. In mainland China, Global Sources has a network of more than 40 office locations and a community of over 4 million registered online users and magazine readers of its Chinese-language media.
Now in its fifth decade, Global Sources has been publicly listed on the NASDAQ since 2000.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements.