China Century Dragon Media today announced that the Company's registered independent accounting firm, MaloneBailey LLP (MB) has formally resigned its engagement with the Company as of March 22, 2011. In its resignation letter, MB informed the Company that due to discrepancies noted on customer confirmations and the auditor's inability to directly verify the Company's bank records, they believe these irregularities may be an indication that the accounting records have been falsified, which would constitute an illegal act. Furthermore, MB's letter notes that the discrepancies could indicate a material error in previously issued financial statements. As a result, MB stated that it is unable to rely on management's representations as they relate to previously issued financial statements and it can no longer support its opinions related to the financial statements as of December 31, 2009 and 2008. The Company intends to seek and retain a new auditor.
On March 23, 2011, the Company received notification from NYSE Amex LLC of its intention to delist the Company's common stock pursuant to Section 1009(d) of the Amex Company Guide based on a determination that it is necessary and appropriate for the protection of investors to initiate immediate delisting proceedings. Based on Amex's review of the resignation letter from MB, it determined that the Company is not in compliance with Amex listing standards and is therefore subject to immediate delisting. The Company has until March 30, 2011 a limited right to request an appeal. If the Company does not request an appeal by then, then the decision will become final and Amex will submit an application to the SEC to strike the Company's common stock from listing. If the Company requests an appeal, then such request will stay a delisting action. The Company currently intends to appeal the delisting determination. There can be no assurance that the Company's request for continued listing will be granted.