Delta Technology Holdings Limited to List Common Stock on the NASDAQ Stock Market LLC
01 June 2015 - 10:34PM
Business Wire
Provides Financial Update for Six Months
Ended June 30, 2014
Management Seeing Continued Bottom Line
Improvement Driven by Improvements in Pricing of its Specialty
Chemical Products and Lower Raw Material Costs
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.”
Financial Information
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
% Change
Compared to
prior year
6 Month Period**
12 Months
Ended
June 30, 2014
As Reference
Low High
Revenue $110mm $120mm $83mm 38.6% $175.3mm
Gross Margin 7% 11% 8% - 9.9% EBITDA $9mm $10mm $8mm 18.8% $16.3mm
Net Income $3.5mm $4mm $3mm 25% $6.8mm EPS* $0.48 $0.55 $0.41 25.6%
$0.96 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150601005869/en/
Delta Technology Holdings Ltd.Richard Yan, +86 511-8673-3102
(China)Chief Financial Officeryh@deltath.comorThe Equity Group
Inc.Adam Prior, 212-836-9606Senior Vice
Presidentaprior@equityny.com
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