QKL Stores (QKLS) Gets Nasdaq Notice of Noncompliance Due to Director Resignation

May 29, 2012 6:32 AM EDT
QKL Stores Inc. (Nasdaq: QKLS), announced that on May 19, 2012, China time, it received a letter from Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company no longer complies with Nasdaq's independent director and audit committee requirements as set forth in Listing Rule 5605 as a result of the vacancy caused by the resignation of Mr. Zhiguo Jin as a member of the Company's board of directors and the audit committee. Listing Rule 5605 requires that a majority of the Company's board of directors be comprised of independent members and its audit committee be comprised of three independent members. The letter also indicated that Nasdaq will provide the Company a cure period in accordance with Listing Rules 5605(b)(1)(A) and 5605(c)(4), respectively.

As we previously disclosed on April 25, 2012, Mr. Zhiguo Jin resigned as a member of the board of the Company on April 19, 2012. Mr. Jin also served as Chairman of the nominating and corporate governance committee and as a member of the audit and compensation committees.

The Company is conducting a search for a new director who meets the requirements of Nasdaq and is available for appointment to the Company's board of directors and audit committee within the cure period allowed under the Nasdaq Listing Rules.

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