JIANGSU, China--(BUSINESS WIRE)--Delta Technology Holdings Limited (“Delta” or “the Company”), a leading provider of specialty chemicals (NASDAQ: CISAW), today announced that it has received approval to list its common shares on the NASDAQ Stock Market (“NASDAQ”). The Listing Qualifications Department of NASDAQ approved Delta’s application for its common shares listing on the NASDAQ on May 29, 2015. The ordinary shares are expected to commence trading concurrent with the opening of the Nasdaq Global Select Market today under the symbol “DELT”. The Company’s publicly-traded warrants symbols will also change from “CISAW” to “DELTW”.
Chairman and CEO, Mr. Xin Chao, stated, “We are excited to announce NASDAQ trading of our common shares, which is the culmination of several months of effort in resolving Delta’s listing status. We worked extensively with NASDAQ during this period to provide as much transparency into the Company and its operations as possible, and are pleased to have established our concrete value with Nasdaq. We would like to thank our shareholders for their patience and support, which includes our initial investors prior to our going public transaction, Kleiner Perkins Caufield Byers and Korea Investment Partners. We expect to utilize our listing status to enhance relations with the global investment community, and believe it will lead to improved liquidity, a wider shareholder base and elevated shareholder value.”
Delta is currently in the process of completing its auditor review for the six months ended December 31, 2014 and December 31, 2013. While the Company anticipates filing these results shortly, it is providing the following ranges for investors. The exa89ct totals are subject to auditor review.
(USD in millions, except
Gross Margin, EPS data)
6 Months Ended
December 31, 2014
6 Months Ended
December 31, 2013
6 Month Period**
June 30, 2014
Table Based on Management Projections
*Based on 7.03M shares outstanding
**Comparison based on the mid-point of the 6 months ended December 31, 2014 and 6 months ended December 31, 2013 ranges
Update on Delta’s Specialty Chemical Operations
Over the past three months, Delta continued to benefit from higher pricing for its two main product lines, PCT/OCT downstream products and unsaturated polyester resin (“UPR”).
The Company’s products are largely subject to cyclical changes in chemical pricing, which has begun to positively turn in the specific niche product segments in which Delta operates due to stronger global demand. These products are utilized in a number of industrial, agricultural, and military applications, including anti-corrosive coating, chemical reaction starters, and pesticides. Delta is the second largest producer of PCT/OCT in the world and also one of the top chemical manufacturers of UPR as well.
Chairman Chao commented, “Delta’s strength is in part due to our broad distribution to our base of nearly 400 global customers. We are continuing to see sales growth among each of our product categories. In addition, we are seeing unique margin expansion as a result of lower comparable crude oil prices in 2015, which is one of the Company’s largest raw material costs. We believe that our leading market position has Delta well-positioned to take advantage of a turn in the market cycle.”
Chairman Chao concluded, “We intend to expand our business to include such higher-margin enterprises such as the logistics and online servicing of our specialty chemicals. We believe that Delta is in the unique position of having created a hyper-focused business with a service component and customer experience that will allow us to outperform larger commodity entities over the course of multiple pricing cycles. We are very excited to move forward after the commencement of trading on NASDAQ and pleased to provide this update to our shareholders.”
About Delta Technology Holdings Ltd.
Founded in 2007, Delta is a leading China-based fine and specialty chemical company producing and distributing organic compound including para-chlorotoluene (“PCT”), ortho-chlorotoluene (“OCT”), PCT/OCT downstream products, unsaturated polyester resin (“UPR”), maleic acid (“MA”) and other by-product chemicals. The end application markets of the Company’s products include Automotive, Pharmaceutical, Agrochemical, Dye & Pigments, Aerospace, Ceramics, Coating-Printing, Clean Energy and Food Additives. Delta has approximately 300 employees, 25% of whom are highly-qualified experts and technical personnel. The Company serves nearly 400 clients in various industries.
Safe Harbor Statement
This press 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. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading “Forward Looking Statements” and those factors captioned as “Risk Factors” in Delta’s periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by Delta.