Netease applies to Nasdaq for hearing
( 2001-07-27 10:48) (7)
Hoping to save itself from possible delisting by Nasdaq, Netease.com Inc announced Thursday that it has applied to the stock exchange for a hearing to appeal that decision.
NetEase received a notice on July 19 in which Nasdaq said the Internet firm violated rules by failing to file its annual report with the US Securities and Exchange Commission. As a result, the stock exchange said it intends to delist the company's American depositary shares on July 27.
The company's stock symbol has been changed to NTESE.O from NTES.O, a typical step Nasdaq takes before delisting a stock.
According to Netease, its annual report has been delayed by an internal investigation, which began in May, into possible misreporting of approximately US$1 million in contracts with advertisers.
"We are still waiting for confirmation from Nasdaq, and we will wait and see when they will arrange the hearing," a Netease spokeswoman told Reuters. If a hearing is granted, the company's stock would not be delisted before the Nasdaq Listing Qualifications Panel makes a decision, she said.
The fledgling company is currently in the hands of Founder and Chairman William Ding, who has temporarily taken over the posts of former Netease CEO King Lai and chief operating officer Susan Chen, who quit in June. The company, which is looking to sell itself, has hired The Goldman Sachs Group to help find it a buyer. A sale to Hong Kong cable TV provider i-Cable Communications Ltd. reportedly fell apart last month over the potential buyer's fear of possible shareholder litigation.