MOKO Social Media Limited (NASDAQ: MOKO) (ASX: MKB) today announced that NASDAQ has determined by letter dated June 7, 2016 that the Company will be delisted from The NASDAQ Stock Market. As previously announced on December 7, 2015, NASDAQ notified the Company that the market value of its listed securities had been below the minimum $50,000,000 required for continued listing for 30 consecutive trading days and the Company was provided 180 calendar days or until June 6, 2016 to regain compliance. The decision was reached by the staff under NASDAQ Listing Rule 5810(c)(3)(c).
The letter states that trading of the Company's American Depositary Shares ("ADSs") will be suspended at the opening of business on June 16, 2016, and NASDAQ will file a Form 25-NSE with the Securities and Exchange Commission, which will remove the Company's securities from listing and registration on The NASDAQ Stock Market.
The Company has considered the letter and does not intend to file a plan to regain compliance or to appeal NASDAQ's determination. The Company believes that the relatively low trading volume of its securities on the NASDAQ over a sustained period no longer justifies the financial and administrative costs associated with maintaining a dual listing. Trading of the Company's securities on the ASX, the Company's primary listing, is not impacted by this decision.
The Company's ADSs may be eligible to be quoted in the over-the-counter market, or "Pink Sheets." To be quoted on the Pink Sheets, a market maker must sponsor the security and comply with SEC Rule 15c2-11 before it can initiate a quote in a specific security. There can be no assurance that a market maker will apply to quote the Company's ADSs or that the Company's ADSs will become eligible for the Pink Sheets.
About MOKO SOCIAL MEDIA Limited
MOKO Social Media is at the forefront of the next generation in social media, providing innovative products and content to enable communities to engage and interact. MOKO provides tailored content for students. Within this space, MOKO has agreements with the largest college and high school sports data providers in the U.S., granting exclusive access to deliver its award-winning app REC*IT, its campus fitness dedicated app REC*IT FITNESS, and high school sports management app BigTeams powered by REC*IT, to over 1,200 U.S. colleges, representing approximately 50% of the U.S. college population, and more than 4,100 U.S. high schools respectively.
MOKO aims to capture its target audiences by becoming their destination of choice for information and interaction. It does this by creating highly relevant and exclusive content, and by providing the platforms that enable the communities to consume and share the content seamlessly across devices. This integrated approach gives MOKO unique and exclusive exposure to markets that are highly desired by advertisers and that can be leveraged for growth and revenue through advertising, sponsorship, social network distribution and other monetization of the platforms.
