TechFaith to Be Delisted From Nasdaq; Stock Plummets 40%
The Chinese company will be delisted on Tuesday, September 17, after failing to comply with the listing requirements.
China TechFaith Wireless Communication Technology Ltd. (Nasdaq: CNTF) announced that it has received a delisting notification letter from the Nasdaq Stock Market, which tanked its stock nearly 40 percent on Thursday.
The Beijing-based company, which operates commercial real estate properties in China and makes handsets, said that it has not filed its Form 20-F for the year ended Dec. 31, 2018, and has failed to regain compliance with the Nasdaq thereafter. As a result, its ADSs will be suspended on Sept. 17.
In May, TechFaith said as a result of not having timely filed its annual report for last year, it was no longer in compliance with the listing rules of the stock exchange, which require timely filing of periodic financial reports. In June, the company has received a notice of non-compliance from the Nasdaq regarding the minimum bid price requirement. In July, the company said it has received a notice of non-compliance from the Nasdaq for failing to maintain the minimum market value of shares as required by the listing rules.
TechFaith said that it has decided not to request an appeal.
Shares in TechFaith closed at 29 cents per ADS on Thursday.