The response of Rodman & Renshaw on NIV/CIL drama:
Trading was halted on China Intelligent Lighting (CIL) on Thursday. It is our belief that the SEC has opened a formal investigation. We believe the basis of this inquiry rests on the Company not providing adequate supporting documentation for its bank transactions to its auditors Malone Bailey LLP. The bank transactions were related to Company's operational accounts, accounts receivable, payables and bank deposits, etc. We are revising our rating on CIL from Market Outperform to Under Review. We are removing our financial projections pending resolution of the outstanding issues.
Related Party Transactions: We also note that there is also a trading halt on NIVS IntelliMedia Technology Group Inc (NIV, Market Outperform) which is controlled by CIL's Chairman and CEO Li Xuemei. We note that CIL has a facility leasing arrangement with NIV's controlling subsidiary, NIVS (HZ) Audio & Video Tech Co. Ltd.
Also Malone Bailey LLP independent auditor submitted its resignation
UNBELIEVABLE WHAT'S HAPPENING, EVEN COMPANIES YOU THOUGHT TO BE LEGIT ARE RUNNING THEIR BUSINESSES LIKE CROOKS.