SINGAPORE, Dec. 20, 2013 /PRNewswire/ -- Linktone Ltd.
(NASDAQ: LTON, ASX: LTL) ("Linktone" or the "Company"), a provider
of media and entertainment content and services in key strategic
markets in Asia, announced today
that it intends to voluntarily delist its American Depositary
Shares ("ADSs") from the NASDAQ Global Select Market ("NASDAQ") and
thereafter intends to deregister its ordinary shares under the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
The Company expects the Form 25 to be filed with the Securities and
Exchange Commission (the "SEC") to voluntarily delist its ADSs on
or about January 2, 2014. Delisting
from NASDAQ is expected to become effective 10 days after the
filing date of the Form 25. Linktone will continue to be subject to
reporting obligations under the Exchange Act until such time as it
can terminate its registration under the Exchange Act.
Following the delisting and provided that the Company continues
to meet the applicable legal requirements, Linktone intends to take
the necessary steps to deregister its ordinary shares and terminate
its reporting obligations under the Exchange Act. Such
deregistration is anticipated to occur in January 2014.
After its ADSs have been delisted from NASDAQ, Linktone expects
that the ADSs may be quoted on the Pink OTC Markets Inc. electronic
quotation service if market makers commit to make a market in the
Company's shares. The Pink Sheets is an electronic network through
which participating broker-dealers can make markets and enter
orders to buy and sell shares of issuers. However, Linktone can
provide no assurance that trading in its ADSs will continue on the
Pink Sheets or otherwise. Moreover, Linktone's ADSs may become more
illiquid once they are no longer traded on the NASDAQ, which could
negatively impact market prices for the Company's ADSs and make it
more difficult for ADS holders to sell their ADSs. For more
information about this service, please see www.otcmarkets.com.
Linktone is also listed on the Australian Stock Exchange (the
"ASX"). ADS holders who do not wish to trade on Pink Sheets may
convert their ADSs to CHESS Depositary Interests ("CDIs") which can
be traded on the ASX. Information regarding the conversion process
can be found on
www.linktone.com/en/ir/shareholder-services.html.
After careful consideration, Linktone's board of directors
decided to delist the Company's ADSs from NASDAQ and deregister its
ordinary shares as it believes that the savings that will benefit
shareholders and the Company outweigh the advantages of continuing
as a dual-listed, U.S. reporting company. Without the annual
accounting and legal costs and administrative burdens associated
with SEC reporting obligations, Linktone believes it will be able
to reduce its costs while still maintaining appropriate financial
controls. Linktone believes that these changes will allow the
Company to better focus on its business.
ABOUT LINKTONE LTD.
Linktone Ltd. is a provider of rich and engaging services and
content to a wide range of traditional and new media consumers and
enterprises in Mainland China, Indonesia, Malaysia, Hong
Kong and Singapore.
Linktone focuses on media, entertainment, communication and
edutainment products, which are promoted through the Group's
various nationwide distribution networks, integrated service
platforms and multiple marketing sales channels, as well as through
the networks of leading mobile operators in Mainland China and
Indonesia.
CONTACTS:
Tan Peck Joo, CFO / Poh Shih Yin,
Regional Financial Controller
Tel: +65-6840-3588 / +65-6840-3503
Email: pjtan@ltongroup.com / shihyin@ltongroup.com
FORWARD-LOOKING STATEMENTS
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," and similar
statements. The accuracy of these statements may be impacted by a
number of risks and uncertainties and you should not place undue
reliance on these statements. Actual results may differ
materially from these expectations due to risks and uncertainties
including, but not limited to, our ability to realize anticipated
benefits and/or cost savings from the deregistration of our
ordinary shares, deliver long term shareholder value, our ability
to complete and maintain our delisting and deregistration as
contemplated or at all, cause our ADSs to trade on the Pink Sheets
or any other market, the risk that deregistration of our ordinary
shares will not beneficially affect our financial condition and
operations and other risks. Linktone does not undertake any
obligation to update this forward-looking information, except as
required under applicable law.
SOURCE Linktone Ltd.