China Auto Logistics Announces Reverse Stock Split
Company Aims to Maintain Listing on NASDAQ
TIANJIN, CHINA -- (Marketwire) -- 10/09/12 -- China Auto Logistics
Inc. (the "Company") (NASDAQ: CALI), one of China's leading
developers of websites for buyers and sellers of imported and
domestic automobiles, a top seller in China of imported luxury cars,
and a leading provider of auto-related services, today announced
that, as previously approved by stockholders at a Special Meeting of
Stockholders held on September 4, 2012, it has filed a Certificate of
Amendment to its Articles of Incorporation, as amended, to effect a
1-for-6 reverse stock split of its common stock that will become
effective at the end of business today.
As a result of the reverse stock split, every six (6) shares of the
Company's issued and outstanding common stock have been combined into
one (1) share of common stock, par value, $0.001 per share. Any
fraction of a share of common stock that would otherwise have
resulted from the reverse stock split will be rounded up to the next
whole share. There will be no change to the authorized shares of
common stock of the Company as a result of the reverse stock split.
Trading of the Company's common stock on The Nasdaq Global Market
("Nasdaq") will continue, starting tomorrow, October 10, 2012, on a
reverse stock split-adjusted basis, under the symbol "CALI." The new
CUSIP number for the Company's common stock following the reverse
stock split is 16936J 202.
Corporate Stock Transfer, the Company's transfer agent, will act as
exchange agent for the reverse stock split. Transmittal letters will
be provided to registered holders of the Company's common stock
providing appropriate instructions.
The primary objective of the reverse stock split is to maintain the
Company's listing on Nasdaq by regaining compliance with the minimum
bid price listing requirement. Under this requirement, the Company's
common stock must have a closing bid price of at least $1.00 for a
minimum of 10 consecutive trading days prior to November 12, 2012.
There can be no assurance that the reverse stock-split will have the
desired effect of maintaining the closing bid price of the Company's
common stock above $1.00 to meet this requirement.
About China Auto Logistics Inc.
China Auto Logistics Inc. is one of China's top sellers of imported
luxury vehicles, and also manages China's largest imported auto mall
in Tianjin. Additionally, it operates www.cali.com.cn, one of the
leading automobile portals in China, as well as three major websites
serving China's auto dealers and their customers. The Company also
provides a growing variety of "one stop" automobile related services
such as short term dealer financing. Additional information about the
Company is available at www.chinaautologisticsinc.com.
Information Regarding Forward-Looking Statements
historical information contained herein, the statements in this press
release are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause our actual results in future
periods to differ materially from forecasted results. These risks and
uncertainties include, among other things, product demand, market
competition, and risks inherent in our operations. These and other
risks are described in our filings with the U.S. Securities and
DGI Investor Relations Inc.
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