China Resources Approve Reverse Split
14 June 1999
China Resources Approve Reverse Split
HONG KONG--June 11, 1999--China Resources Development, Inc. , a leading natural rubber and agricultural products distributor based in the People's republic of China (PRC), today announced that the Company shareholders approved a one-for-ten reverse stock split at the annual shareholders meeting held on May 28, 1999. The reverse split becomes effective upon the close of trading on June 11, 1999. Beginning on Monday, June 14, the company's trading symbol will temporarily be changed to "CHRBD."On April 30, 1999, the record date for the annual meeting, there were 5,929,004 shares of common stock and 3,200,000 shares of Series B Preferred stock outstanding. Following the reverse split there will be approximately 592,900 shares of common stock and 320,000 shares of Series B Preferred stock outstanding. The par value of the stock and the number of authorized shares will not be affected.
Ching Lung Po, Chairman of the Board of Directors of the Company, said, "As of December 10, 1998, the closing bid price for the Company's common stock had been less than $1.00 for more than 30 consecutive trading days. The Company received a notification of non-compliance from Nasdaq dated December 10, 1998, which indicated that non-compliance would lead to delisting of the Company's common stock from the Nasdaq Small-Cap Market. On March 9, 1999, the Company filed a request with the Nasdaq Listing Qualifications Hearing Department for a hearing to contest the delisting of the Company's common stock. The delisting was stayed pending the hearing, which took place on May 6, 1999, and the hearing panel's determination is pending. Our Board of Directors believes that it is in the best interests of the Company and its shareholders to maintain the listing of the Company's common stock on the Nasdaq Small-Cap Market and that the consummation of the approved reverse stock split should increase the price per share of common stock to in excess of $1.00."
Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including but not limited to, the reaction of the public trading market to the reverse stock split, competitive pressure from within the natural rubber industry, quarterly fluctuations in results, the management of growth, market dynamics and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.
China resources Development, Inc., with offices in Hong Kong and the Hainan Province in the PRC, through a subsidiary, owns a 61% interest in Hainan Zhongwei Agricultural Resources Co., Ltd. (HARC). HARC markets and distributes dry, natural rubber, liquid latex and other agricultural products, and procures production materials and supplies for major customers. The Hainan Province supplies over 60% of the PRC's natural rubber production.