According to PacificNet (PACT.PK), Nasdaq says the company is subject to delisting from the Nasdaq Global Market.
This comes as a result of the company's failure to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 with the Securities and Exchange Commission by April 17, 2007. Nasdaq Marketplace Rule 4310(c)(14) requires Pacificnet to file all required reports with Nasdaq on or before the date they are required to be filed with the Securities and Exchange Commission.
The company's prior independent public accountants have withdrawn their audit reports regarding the Pacificnet's financial statements for the years ended December 31, 2005 and 2004 and the company's audit committee is currently conducting an independent internal investigation with respect to the company's stock option grant practices.
Pacificnet says it has a hearing scheduled with the Nasdaq Listing Qualifications Panel at which time it will present a plan of compliance with respect to the timeline for the re-instatement of audited financial statements for the fiscal years ended December 31, 2005 and 2004, and the filing of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006.