Tuesday, August 31, 2010

China Insonline Corp (CHIO) failure to meet the NASDAQ Qualifications

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 25, 2010 (the “Notice Date”), the Registrant received a letter from NASDAQ Listing Qualifications (the “Letter”) indicating that from March 18, 2010 through July 8, 2010, China INSOnline (the “Company”) violated NASDAQ Listing Rule 5605(c)(2)(A) (the “Rule”), in that its Audit Committee did not consist of a minimum of three independent directors. In the Letter, NASDAQ Listing Qualifications recognized that it regained compliance with the Rule when appointed Mr. Xiaoshuang Chen, an independent director, to the Company’s Audit Committee on July 8, 2010.

A red flag but expected. They need all the money to turn the business around, so an expensive NASDAQ listing would hurt their financial position.
We drop our coverage because of recent events.

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