BEIJING and NEW YORK, Jan. 20,
2020 /PRNewswire/ -- Wins Finance Holdings Inc. ("Wins
Finance" or the "Company") (NASDAQ: WINS), a diversified investment
and asset management company that provides integrated financing
solutions to small and medium enterprises ("SMEs") in China, today announced that on January
17, 2020, the Company submitted its plan of compliance in
connection with its failure to timely file its Annual Report on
Form 20-F for the year ended June 30,
2019 (the "2019 20-F") for continued listing on the NASDAQ
Capital Market, as set forth in NASDAQ Listing Rule 5550(c)(1).
On November 18, 2019, the Company received a notification
letter from the NASDAQ Listing Qualifications ("NASDAQ") stating
the Company was not in compliance with NASDAQ Listing Rule
5250(c)(1), due to its failure to timely file its Annual Report on
Form 20-F for the year ended June 30, 2019 (the "2019 20-F"). The
NASDAQ notification letter provided the Company with 60 calendar
days from the date of the notification, or until January 17, 2020,
to submit a plan to NASDAQ to regain compliance with the NASDAQ's
continued listing requirements. If the plan is accepted, NASDAQ can
grant an exception of up to 180 calendar days, or until May 13,
2020, for the Company to regain compliance. The Company may regain
compliance at any time by filing its 2019 20-F. If NASDAQ does not
accept the Company's compliance plan, the Company will have the
opportunity to appeal that decision to a Hearing Panel under
Listing Rule 5815(a).
The Company was unable to timely file its 2019 20-F due to the
uncertainty over the recovery of RMB 580
million (approximately $83
million) in principal under an agreement the Company entered
into in 2014 with Guohong Asset Management Co., Ltd., which was due
to be repaid in October 2019. The
Company has commenced discussions with Guohong Asset Management
Co., Ltd. to recover the amount due, but there is no assurance that
the Company will be able to recover any or all of the amount due.
However, the failure to collect this amount will not impact the
Company's ongoing operations. The Company is currently working with
its auditors on finalizing the Company's financial statements for
its fiscal year ended June 30, 2019
in light of the uncertainty around this payment.
The Company will continue to cooperate with NASDAQ staff and
provide information and documents requested by NASDAQ. The Company
will provide timely updates to the market upon NASDAQ's decision
regarding the Company's compliance plan.
About Wins Finance
Wins Finance is a diversified investment and asset management
company listed on NASDAQ. The Company is focused on identifying
value accretive investment opportunities and assets in China and the United
States that can be enhanced through the strategic
involvement of its established management team and its familiarity
with the Chinese investment community to help generate long-term
value for shareholders. Wins Finance is well positioned to leverage
its expertise and existing operations in China to build a comprehensive platform for
the provision of lending and other financing solutions to the
under-served small and medium enterprise segment. For more
information, please visit www.winsholdings.com.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. All statements other than
statements of historical fact in this press release are
forward-looking statements and involve certain risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. These forward-looking
statements are based on management's current expectations,
assumptions, estimates and projections about the Company and the
industry in which the Company operates, but involve a number of
unknown risks and uncertainties. Further information regarding
these and other risks are described in the Company's Annual Report
on Form 20-F for the year ended June 30,
2018 and in the Company's other filings with the U.S.
Securities and Exchange Commission. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these forward
looking statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and actual results may
differ materially from the anticipated results. You are urged to
consider these factors carefully in evaluating the forward-looking
statements contained herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by these cautionary statements.
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SOURCE Wins Finance Holdings Inc.