VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2012) - Xianburg Data Systems Canada Corporation (TSX VENTURE:XDS.H) (the "Company") announces that the TSX Venture Exchange (the "TSXV") has notified the Company of the TSXV's intention to delist the Company from the NEX at the close of market on September 14, 2012 (the "Delisting Date"). The TSXV has notified the Company that it may avoid the delisting of its shares if, prior to the Delisting Date, the Company has (a) filed on SEDAR and with the securities commissions all outstanding financial statements; and (b) the Company has obtained a revocation of all outstanding Cease Trade Orders issued against the Company.
The Company has filed with the securities commissions all financial statements which have been required to be filed under applicable securities laws including audited financial statements for the financial years ended December 31, 2010 and 2011, so there are no outstanding financial statements to be filed. The Company is working closely with its advisors to address the requirements and conditions of the British Columbia Securities Commission ("BCSC") to revoking the Cease Trade Order issued on May 10, 2011 (the "CTO"). The BCSC has advised the Company that as one of the conditions to revoking the CTO, it will require a third year of audited financial statements. The BCSC does not regard the fiscal 2009 audited financial statements as being accompanied by a clean audit opinion since there was a restatement of those financial statements when the audited financial statements for fiscal 2010 were issued. The Company had planned to have its current auditor, Manning Elliott LLP, prepare an audit opinion in respect of the financial year ended December 31, 2009, to satisfy the BCSC requirement. In order to do this, the Company's former auditor, Lo Porter Hetu, would be required to withdraw its audit opinion prepared in respect of the 2009 financial statements. Unfortunately, the Company's former auditor has refused to cooperate in this matter. As such, the Company is currently unable to confirm whether it will be in a position to successfully address the BCSC's requirements and conditions to obtain a revocation of the CTO before the TSXV delists the Company from NEX.
Jingping Dong, the Chief Executive Officer of the Company, states, "The delisting of the Company from the NEX under these circumstances is regrettable and frustrating for all shareholders. I want to assure shareholders that the Company is committed to fulfilling its on-going reporting requirements and is doing everything it can get the CTO lifted as fast as possible." The Company is continuing to address comments raised by the BCSC in respect of its past continuous disclosure filings, and it is also actively exploring and considering all of its options with the aim of having the CTO revoked at the earliest time and of having the Company's shares listing on a recognized exchange.
About Xianburg Data Systems Canada Corporation
The Company, through its wholly-owned subsidiary Xianburg Data Systems (Canada) Inc., governs and administers the operating entity XID, a Chinese based operating company, and will earn substantially all of its income from XID. XID is an IT products and services firm with offices in Xi'an and Beijing and it is recognized as a leader in China in providing mass data storage and disaster recovery IT solutions. XID's core business is data entry with a specialty of converting paper documents to electronic format (digitization) and it also manufactures high-performance, high-capacity storage systems for the archiving and publication of such documents.
On behalf of Xianburg Data Systems Canada Corporation
Jingping Dong, Chairman, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.